With a new incoming administration, possible tax cuts, impactful legislation, and a lot of change lie ahead.
On the campaign trail, President-elect Donald Trump spoke regularly about his interest in shaking up the economy, delivering relief from inflation, providing tax cuts, and charging tariffs. While neither candidate presented detailed visions for the economy, both alluded to tax relief, and other sweeteners to appeal to voters. In the coming year, president-elect Trump will be tasked with realizing some of those promises in real time with real money.
One move already made by president-elect Trump was the appointment of businessman Elon Musk and former Pharma exec Vivek Ramaswamy to head up a panel to take a deep dive into government expenses with the aim of slashing government spending and simplifying government regulations, mostly by eliminating them. The two businessmen will be joined by the proposed chair of the panel, Marjorie Taylor Greene.
The panel will be called the Department of Government Efficiency or DOGE for short. The whimsical acronym for the government panel takes its name from the cryptocurrency called “Dogecoin,” originally created as a joke but which has since gained market value as a “meme-coin.” The cryptocurrency has been endorsed by Musk.
It is almost certain taxpayers are looking forward to tax-cut legislation in the New Year. For high-asset business owners and taxpayers, this is especially good news. Top-percentile taxpayers benefited during the previous Trump presidency and can look forward to more of the same. Funding provided to the Internal Revenue Service (IRS) to modernize and better serve U.S. taxpayers while collecting needed government revenue is likely to be walked back, at least in part. During the previous two years, the IRS made significant inroads into pursuing and collecting owed tax liabilities of high-income earners. That activity is likely to cease under the next Trump administration—a boon for wealthy taxpayers.
Sources suggest Musk and Ramaswamy are interested in spearheading a mobile app to submit tax returns. With its current increased budget, the IRS and the current administration have been working toward streamlined filing methods in the last two years. According to the Washington Post, approximately 100,000 filers took advantage of the new free filing portal offered by the IRS this year. With continued support for streamlined, free filing, via web portal or a potential future app, taxpayers and the IRS could have an easier path ahead for filing and processing tax returns.
As with each administration, change is certain. We will keep you posted.
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