Key tax reforms could impact your income, savings, and investments starting in 2025.
The 2024 elections are over, and President-elect Donald Trump is poised to introduce major Trump tax policy changes aimed at reshaping the economy, jobs, and taxes. With a Republican majority in Congress, these changes could pass quickly, bringing significant impacts to taxpayers like you.
Trump's 2017 Tax Cuts and Jobs Act (TCJA) will remain a central part of his economic plan, but several new additions are on the table. Here are 11 Trump tax policy changes you need to know—and how they could affect your financial future.
1. Trump Tax Policy Changes: Individual Income Tax Provisions
Proposal: Make TCJA individual income tax provisions permanent (effective 2026), except for the $10,000 SALT deduction cap.
Impact: Significant tax savings for high-income earners, especially in high-tax states.
2. Gift and Estate Taxes
Proposal: Make TCJA gift and estate tax provisions permanent.
Impact: High-net-worth families will benefit from extended gift and estate tax exclusions.
3. Trump Tax Policy Changes for Business Benefits
Proposal: Restore TCJA provisions like 100% bonus depreciation and R&D expensing.
Impact: Businesses, particularly those investing in equipment and development, will see major tax savings.
4. Opportunity Zone Extensions
Proposal: Extend Opportunity Zone (OZ) benefits to attract investment in underserved areas.
Impact: Taxpayers with capital gains can invest for potential tax-free growth.
5. Trump Tax Policy Changes: Encouraging Domestic Production
Proposal: Reinstate Domestic Production Activities Deduction at 28.5%.
Impact: Businesses relying on U.S.-based production will enjoy lower taxes.
6. No Tax on Tips
Proposal: Exempt tips from federal income taxes.
Impact: Service industry workers would keep more of their income.
7. Trump Tax Policy Changes: Social Security Benefits Exemption
Proposal: Exempt Social Security benefits from income taxes.
Impact: Retirees may draw Social Security earlier, with significant savings for higher earners.
8. Overtime Pay Exemption
Proposal: Remove federal taxes on overtime pay.
Impact: Hourly workers could see increased take-home pay.
9. Deduction for Car Loan Interest
Proposal: Allow a Schedule A deduction for personal car loan interest.
Impact: Taxpayers with vehicle loans who itemize could see added deductions.
10. Trump Tax Policy Changes: Repeal of Green Energy Credits
Proposal: Remove credits for green energy improvements and vehicles.
Impact: Taxpayers investing in solar panels or EVs would lose tax incentives.
11. Higher Tariffs on Imports
Proposal: Raise tariffs, including a 60% tariff on Chinese goods.
Impact: Prices on imported goods could rise, hitting everyday consumers.
The Bottom Line
Trump's proposed Trump tax policy changes aim to stimulate job growth, reduce taxes for businesses and individuals, and encourage domestic investment. While many taxpayers stand to benefit, these reforms come with a projected $3 trillion revenue loss over 10 years.
Stay ahead of the curve—understanding these proposals now can help you plan for 2025 and beyond. If you’re unsure how these changes might impact your finances, it’s time to take a closer look.
If you find yourself with tax problems of any kind, don't hesitate to contact us for help and guidance. That's what my team and I are here for.
You can contact me by one of the methods below in the blue box, or email me at Larry@TaxProblemSolver.com and we can review your specific issues and solve them. You can also click here to book a free consultation.
Would You Like to Find Out What Your
Next Best Steps Should Be?
Choose one of the 3 FREE contact methods that is easiest for you.
Schedule a Call with Us
Click the calendar button below to view our appointment calendar, and choose a day & time, and we’ll call you then.
We look forward to your free consult!
Call Us Now
Click the phone button below to either "click to call" or direct dial a number to speak with us right now.
We look forward to speaking with you!
9-Secrets You Need to Know
When the IRS is after you, you need to be informed. What you say to the IRS can be used against you.
Get My 9 Secrets email series now. I'll also add you to my newsletter.
