Many of the Tax Cuts and Jobs Act (TCJA) provisions expire or change at the end of 2025, creating what is being referred to as a “tax cliff.’’ Without congressional action, taxes on individuals and corporations are scheduled to increase by approximately $3.5 trillion, with more than $2 trillion of it falling on individual taxpayers.

Many expired and expiring tax provisions (for example, traditional “tax extenders”) not associated with the TCJA will also change, impacting businesses and individuals, adding to the scope of the tax policy issues at play. With so many tax provisions expiring or having already expired, policymakers will be looking to the tax code for revenue to offset extending tax policies favorable to small businesses and certain individual taxpayers.

The time to prepare is now

Model, monitor, and maintain engagement in the policy process as it unfolds towards 2025.

The 2024 Presidential and congressional elections will shape the power dynamics in Washington. As the election season unfolds, each party will point to its tax agenda to help distinguish its approach to economic policy. At the same time, policymakers will be working to shape legislation throughout the year as the parties build their platforms in advance of the pending TCJA tax cliff.

Right now, taxpayers need to be assessing the landscape, pinpointing potential risks and opportunities, and identifying their priority issues and potential areas for policy engagement.

By staying informed and being actively involved, you can help shape the narrative and effectively navigate the shifting tax landscape to position your organization for success in 2025 and beyond.

Survey respondents’ greatest tax policy concern

TCJA provisions expiring at the end of 2025 was one of the biggest tax policy concerns for respondents to EY’s Business Tax Policy Barometer survey (51%).

Greatest tax policy concern

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