I realized that, in reviewing what we’d written that we made a big omission, which we’ve corrected in our 2025 Forecast course that we did for the www.bizsuccess.school: Taxes
Federally, there are three pieces to think about:
- We think the Trump tax cuts enacted in 2017 will be made permanent, which means the overall tax rates stay at 21%.
- Accelerated depreciation remains from earlier years, but we don’t think it will be increased.
- Trump would like to decrease the corporate tax rates to 15% to make us more competitive internationally. We don’t know if Congress will enact this, but it’s likely to happen in the 2nd quarter, because Trump has flooded the zone with so many other ideas to fix government.
State tax trends are towards elimination, but you readers should know what you’re paying in your state.
We only twist political arms in Arizona, but John Heinrich went to Wharton with Trump, knew him, so has some level of influence.
The state and local tax deduction, which is an issue only in some states (New York, Illinois and California) will probably be retained, but check with your CPA.
Lastly, the 87,000 IRS agents that Biden wanted to hire don’t seem to have survived the budget cycle, and Trump threatened to put them to work as border agents, so the issue has probably gone away.