By: Kinnidee Lauenroth, Controller at Osborne Rincon CPAs
The incoming administration’s proposed tax policies suggest a continuation of significant reforms designed to benefit both individuals and businesses. At the forefront of these plans is a commitment to making the provisions of the 2017 Tax Cuts and Jobs Act permanent. These include maintaining lower individual tax rates, an expanded standard deduction, and increased child tax credits – which are currently set to expire after 2025. Such measures aim to stabilize the tax landscape for households and ensure predictable financial planning.
For businesses, the proposals focus on further reducing the corporate tax rate, which was previously lowered to 21%, with discussions of potentially decreasing it to 15%. This move seeks to enhance the global competitiveness of domestic corporations and encourage investment within the country. Additional incentives, such as reinstating full deductions for research and development costs and extending 100% bonus depreciation, aim to promote growth in innovation and manufacturing.
Plans also include eliminating income taxes on Social Security benefits, a change expected to relieve financial pressure on retirees. However, this proposal comes with significant fiscal implications, with projected revenue losses exceeding $1 trillion over the next decade. The administration also supports the implementation of tariffs on imported goods as a means of strengthening domestic industries, though the potential impact on consumer prices remains a topic of debate.
While these measures collectively emphasize reduced taxation and economic stimulation, they are not without challenges. Analysts have raised concerns about the potential increase in the federal deficit, estimated to rise by trillions over the coming years under these proposals. This highlights the importance of balancing immediate taxpayer relief with long-term fiscal responsibility.
As these tax policies take shape, navigating their impact can feel overwhelming. At Osborne Rincon, we are committed to ensuring our clients remain informed and prepared. Our team stays at the forefront of tax law developments, offering expert guidance tailored to your unique situation. Whether you’re a business seeking to maximize opportunities or an individual aiming for financial stability, we’ll help you adapt to these changes with confidence. Together, we’ll chart a course to success in this evolving tax landscape.
Kinnidee Lauenroth graduated from American Public University in 2018 with a bachelor’s degree in accounting. She began working for Osborne Rincon CPAs in November 2014. She started her career as a bookkeeper, and has since advanced to the company’s Controller and Staff Accountant II.