
US Insights
What impact will a new Trump Presidency have on taxes?
A new Trump Presidency
With newly elected President Trump officially in office following Monday’s inauguration, we ask: What does this mean for Taxes?

We’ve been here before. In 2017, the Republicans controlled the Presidency, the House, and the Senate. However, this did not give them a free pass to enact all their tax promises. Without a supermajority, much like in 2017, any tax changes will need to go through the Budget Reconciliation process. This means they will need to balance the books to get their tax policy priorities passed.
In 2017, President Trump introduced the Tax Cuts and Jobs Act (TCJA). This act reduced both individual and corporate federal tax rates, increased the lifetime gift and estate limit, and almost doubled the standard deduction for individuals. As part of the Budget Reconciliation process at the time, the deduction for State and Local Taxes (SALT) was capped at $10,000, and many of the cuts were set to expire at the end of 2025.
Extending the provisions of the TCJA is a priority for the incoming President, and there is talk that this may even happen within the first 100 days in office. This would help taxpayers plan, especially for items such as the estate and gift limits which will be cut roughly in half barring an extension.
In addition to the cost of extending the TCJA, the Republicans have discussed potentially allowing the SALT cap to expire and possibly expanding the child tax credit. It is unclear whether these items, as well as potential further cuts, particularly to the corporate tax rate, will be able to pass while still balancing the budget.
One proposed way to help balance the budget has been tariffs. While these will not directly affect US taxpayers overseas, those doing business with the US may need to consider the commercial consequences of tariffs and how they may continue to do business with US customers.
Finally, on the campaign trail, overseas US taxpayers were briefly mentioned, with President Trump proposing to eliminate double taxation for those outside the US. With so many items on their agenda and the need to balance the budget, we assume this is lower on their list of priorities and unlikely to happen soon.
Would you like to know more?
If you have any questions about the above may impact you or your business, please get in touch with your usual Blick Rothenberg contact or Alex or Jim using the form below
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Personal tax is one of the most complex areas of wealth management and can significantly erode your wealth over time
Blick Rothenberg is considered to be market leaders in the taxation of non-UK domiciled individuals and offshore trusts, as well as cross-border personal taxation.
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