It’s official, Donald Trump will return to office on 20 January when he will, again, be inaugurated as US President.
He has previously indicated that if re-elected, he would push for further tax reforms building on the 2017 Tax Cuts and Jobs Act (TCJA).
Here are some ideas he’s proposed previously to give you a flavour of what may be ahead:
The 2017 tax cuts for individuals are set to expire after 2025. Trump has expressed interest in making these tax cuts permanent, which would keep the lower income tax rates (down from 39.6% to 37%) and higher standard deduction in place. It could also see the estate and gift tax exemption remain at its current level and increase further with inflation (currently $13.61 million in 2024).
Trump has suggested that he will look to reduce capital gains tax rate (currently the tax rate is up to 20% for long term gains and up to 37% for short term gains). He is also considering indexing capital gains to inflation which would effectively reduce the taxable gain on long-held assets.
Building on the previous increase to the Child Tax Credit, Trump has suggested that he may increase the refundable portion to assist low- and middle-income families.
Trump has indicated he may seek additional tax cuts for middle-income families by lowering tax rates for certain brackets or offering new deductions or credits to support family-related expenses.
We could see the current corporation tax rate of 21% reduced in order to increase US business competitiveness globally.
On the 9th October, Trump vowed to see an end to Americans living overseas having to declare worldwide income! This would be a massive change to the current US tax system which see citizens having to declare and report their worldwide income on an annual US tax return regardless as to where they are living. However, getting Congress to pass this may be a step too far even for the Donald.
One thing that can be certain is that Donald Trump's next term as President will be quite eventful!