{"id":10524,"date":"2024-05-03T08:00:55","date_gmt":"2024-05-03T05:00:55","guid":{"rendered":"https:\/\/ch.jfdi.cc\/?p=10524"},"modified":"2024-05-03T08:00:55","modified_gmt":"2024-05-03T05:00:55","slug":"2025-and-the-tax-cuts-and-jobs-act-building-your-tax-story","status":"publish","type":"post","link":"https:\/\/ch.jfdi.cc\/?p=10524","title":{"rendered":"2025 and the Tax Cuts and Jobs Act: Building your tax story"},"content":{"rendered":"

Extending all of the TCJA individual provisions at every income level has an estimated cost of $3.5 trillion over the next 10 years, according to the Congressional Budget Office. There\u2019s strong bipartisan support for extending most of the TCJA individual provisions, but even President Joe Biden\u2019s proposal to maintain TCJA individual tax provisions for those with incomes below $400,000 would have a high cost of between $2 trillion to $2.25 trillion. The business extenders cost less \u2014 approximately $1 trillion. If policymakers decide not to preserve these provisions, however, that decision could negatively affect growth by increasing the cost of business investment and job creation. \u00a0
\nAs debt concerns mount, the fiscal cliff becomes steeper, leaving Congress to look elsewhere for revenue. Executives have expressed concern that the corporate tax rate may be among the first things that decision-makers consider. TCJA lowered the corporate tax rate to 21%, a move with no end date, but deficit concerns and political pressures could change that. Congress also could change other business tax rules in ways that would increase taxes paid by corporations even if the 21% rate remains in place.
\nEven without US tax increases, multinational companies should be prepared to pay a higher overall tax rate under the new global minimum tax regime created by Pillar Two. Many aspects of the OECD\u2019s global framework became effective on January 1, 2024, but key aspects of the rules remain subject to ongoing discussions, such that taxpayers may still be figuring out how to comply with Pillar Two rules long term.\u00a0\u00a0<\/p>\n

A chance to join the debate \u00a0<\/h3>\n

Much has changed since 2017, including the faces of those who were on Capitol Hill at the time. For example, only four of the 24 House Ways and Means Republicans who helped write the 2017 Act remain on the committee. You can\u2019t assume that today\u2019s Congress is familiar with what happened then and what\u2019s important to your organization today. \u00a0
\nNo one can be certain which party will control the House and Senate in 2025, but most of the current members of Congress are likely to return next year. Yet, according to PwC\u2019s\u00a0August 2023 Pulse Survey Survey,\u00a0only 27% of tax leaders say they\u2019re actively engaging with lawmakers on US or global tax policy.
\nBuilding a coalition among the C-suite and board is the first step to crafting a story focused on what their corporate tax policies could mean for Main Street.\u00a0\u00a0<\/p>\n

Educate internal stakeholders \u00a0<\/h4>\n

It\u2019s just as important for internal stakeholders to understand the possible implications. The CFO, board and audit committee will want to know the impact of these proposals. Consider the following:\u00a0<\/p>\n