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With a GOP majority in the Senate and House, President-elect Trump plans to enact major tax reforms likely through budget reconciliation.
As the political landscape shifts in Washington, the Republican Party is poised to take the reins of power in 2025, with former President Trump returning to the presidency and the GOP securing control of both the Senate and the House of Representatives. This political realignment sets the stage for a significant legislative agenda, particularly in the realm of tax policy. The Republicans have begun laying the groundwork for a comprehensive budget reconciliation bill that will extend the Tax Cuts and Jobs Act (TCJA) provisions and potentially introduce new tax cuts. With the ability to pass legislation with a simple majority in the Senate, the GOP is positioned to advance its fiscal priorities without needing to compromise with Democrats.
Washington Council Ernst & Young (WCEY) is a tax, legislative and regulatory group within Ernst & Young LLP that combines the power of a leading professional services organization with the on-the-ground knowledge, personal relationships and attention to detail of a boutique Washington-insider firm.
The election results that have led to this Republican resurgence were decisive, with Trump reclaiming key battleground states that had previously swung in favor of President Biden in 2020. The GOP has also secured a 53-seat majority in the Senate by flipping several critical Democratic seats. This newfound control will enable Republicans to actively pursue their legislative goals, particularly in areas such as tax reform, where they aim to extend TCJA provisions and potentially introduce additional tax cuts aimed at stimulating economic growth. However, the party will need to navigate internal debates over fiscal discipline and the extent of revenue offsets required to manage the national deficit and debt.
As Republicans prepare to take control, the coming months will be critical in shaping the legislative landscape and determining the extent to which they can implement their vision for America's economic future.
Former President Trump returns in 2025 with Republicans controlling the Senate and House. This GOP majority enables them to enact a budget reconciliation bill extending TCJA provisions without Democratic support. Focus areas for the GOP include broad tax cuts, tariffs, and rolling back certain energy tax credits, with intraparty negotiations expected on the cost of implementing these policy priorities and potential revenue offsets.
US election 2024
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The outcome of the 2024 election is pivotal to global trade and could have a significant impact on trade policies, global partnerships, tariff structures.
