As the Trump administration prepares to take office in January 2025, businesses across the United States are bracing for significant policy shifts that could reshape the regulatory landscape. Here’s an overview of key legislative changes that may impact businesses in the coming year:
Tax Policy
The expiration of the 2017 Tax Cuts and Jobs Act (TCJA) at the end of 2025 is a primary focus
. Key provisions set to sunset include:
- The 20% pass-through business income deduction (Section 199A)
- Research and development (R&D) expensing
- Bonus depreciation
The new administration is likely to push for extending or modifying these tax policies
Proposals include lowering the top tax rate and reducing the corporate tax rate while increasing child tax credits
However, concerns over reduced federal tax revenue could lead to program cutbacks
Regulatory Approach
A shift towards a more business-friendly regulatory environment is anticipated
. The administration has signaled intentions to:
- Eliminate 10 old regulations for every new one introduced
- Focus on innovation and economic competitiveness rather than civil rights aspects of policy
- Potentially restructure or dismantle agencies like the Cybersecurity and Infrastructure Security Agency (CISA)
Employment and Labor
Changes in employment regulations are expected, including:
- Looser regulations from agencies like the Department of Labor and National Labor Relations Board
- Increased scrutiny of diversity, equity, and inclusion (DEI) initiatives
- Stricter policies governing immigration, including visa issuance and processing times
Technology and Data Privacy
The administration is likely to take a different approach to technology regulation:
- Shift away from stringent federal rules on AI and data privacy
- Potential changes to social media content moderation policies
- Possible rejection of aspects of the National Cybersecurity Strategy that called for greater private sector regulation
Small Business Focus
Several changes explicitly targeting small businesses are anticipated:
- Implementation of the Corporate Transparency Act, requiring beneficial ownership reporting
- Potential changes to state-level overtime and minimum wage rules
- New federal FinCEN registration requirements
- Changes in taxation of payments from third-party platforms like Venmo and PayPal
International Trade
The new administration may implement policies that could affect international trade:
- Potential increase in tariffs
- Focus on strengthening national security and protecting critical infrastructure.
- Emphasis on growing U.S. manufacturing and increasing Buy American requirements
As businesses prepare for these potential changes, staying informed and adapting strategies is crucial. Consulting with Business CFO for Hire can help navigate the evolving regulatory landscape and ensure compliance with new requirements.