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IRS Updates, Tax Tips, and Program Information. Anything you want to know to help your business get the money is deserves you can find right here.
Declared Disasters
Breaking Down the Latest Republican Tax Proposals for 2025
Breaking Down the Latest Republican Tax Proposals for 2025
On January 17, 2025, reports emerged detailing a list of tax proposals circulated by Republican members of Congress. These proposals suggest significant changes to individual, corporate, and nonprofit taxation, alongside modification in IRS enforcement fundig. Below, we summarize the key elements of these proposals and their estimated revenue impacts over the next decade.
Individual Taxation Changes
SALT Deduction Reform Options
The state and local tax (SALT) deduction cap of $10,000 expires at the end of the year. Several reform options have been proposed:
Repeal SALT Deduction: Eliminate SALT deductions, raising $1 trillion over ten years.
Make SALT Cap Permanent & Double for Married Couples: Maintain the $10,000 cap but increase it to $20,000 for married couples, for $100-$200 billion.
Increase Cap to $15,000/$30,000: Raise the deduction limit to $15,000 for individuals and $30,000 for married couples, costing $500 billion.
Limit Deduction to Property Taxes Only: Eliminate deductions for income and sales taxes while allowing uncapped property tax deductions, costing $300 billion.
Eliminate SALT Deduction for Businesses: Maintain the cap for individuals while removing the deduction for businesses, generating $310 billion in revenue.
Mortgage Interest Deduction Reform
Repeal Deduction for Primary Residences: This change could raise $1 trillion over ten years.
Lower the Deduction Cap to $500,000: A more modest change, raising $50 billion over ten years.
Repeal Exclusion of Interest on State & Local Bonds
Repealing the exclusion for state and municipal bonds could generate $250 billion.
Repealing tax-exempt status for private activity bonds would bring in an additional $114 billion.
Estate Tax Repeal
Eliminating the estate tax, currently applicable to estates over $13.99 million, would cost $370 billion over ten years.
Exempting Americans Abroad from Income Tax
Options include raising the foreign-earned income exclusion (currently $130,000) or eliminating U.S. taxation on foreign-earned income—estimated cost: $100 billion.
Corporate Taxation Changes
Corporate Income Tax Rate Reductions
Lowering the corporate tax rate from 21% to 15% would cost $522 billion over ten years.
Lowering the rate to 20% would cost $73 billion.
Repealing the Corporate Alternative Minimum Tax (CAMT)
The 15% CAMT imposed by the Inflation Reduction Act would be eliminated, at a cost of $222 billion.
Repealing Green Energy Tax Credits
Tax credits for clean energy initiatives (such as carbon sequestration and electric vehicles) would be repealed, saving $796 billion.
Ending the Employee Retention Tax Credit (ERTC)
The ERTC was designed to support businesses during COVID-19. The proposal would extend the current moratorium on new claims and impose stricter fraud penalties, saving $70-$75 billion.
Nonprofit Taxation Changes
Expanding the Endowment Tax on Private Colleges
Increasing the excise tax on endowment income from 1.4% to 14% would generate $10 billion.
Changing the student calculation method for tax purposes could raise an additional $275 million.
Eliminating Nonprofit Status for Hospitals
Revoking hospitals' tax-exempt status could generate $260 billion over ten years.
IRS Enforcement & Funding Repeal
Repeal of IRS Enforcement Funding
The Inflation Reduction Act allocated supplemental funding to the IRS for enforcement. Repealing this funding would reduce outlays by $20 billion but also decrease tax revenue collections by $66.6 billion, resulting in a net cost of $46.6 billion over ten years.
These tax proposals represent significant shifts in federal taxation policy. While many of the proposed measures aim to reduce the tax burden on individuals and businesses, they also come with varying revenue trade-offs. Policymakers and taxpayers alike should closely monitor these discussions as they unfold in Congress.
As always, individuals and businesses should consult tax professionals to understand how these potential changes may impact them.
Natural Disasters
Breaking Down the Latest Republican Tax Proposals for 2025
Breaking Down the Latest Republican Tax Proposals for 2025
On January 17, 2025, reports emerged detailing a list of tax proposals circulated by Republican members of Congress. These proposals suggest significant changes to individual, corporate, and nonprofit taxation, alongside modification in IRS enforcement fundig. Below, we summarize the key elements of these proposals and their estimated revenue impacts over the next decade.
Individual Taxation Changes
SALT Deduction Reform Options
The state and local tax (SALT) deduction cap of $10,000 expires at the end of the year. Several reform options have been proposed:
Repeal SALT Deduction: Eliminate SALT deductions, raising $1 trillion over ten years.
Make SALT Cap Permanent & Double for Married Couples: Maintain the $10,000 cap but increase it to $20,000 for married couples, for $100-$200 billion.
Increase Cap to $15,000/$30,000: Raise the deduction limit to $15,000 for individuals and $30,000 for married couples, costing $500 billion.
Limit Deduction to Property Taxes Only: Eliminate deductions for income and sales taxes while allowing uncapped property tax deductions, costing $300 billion.
Eliminate SALT Deduction for Businesses: Maintain the cap for individuals while removing the deduction for businesses, generating $310 billion in revenue.
Mortgage Interest Deduction Reform
Repeal Deduction for Primary Residences: This change could raise $1 trillion over ten years.
Lower the Deduction Cap to $500,000: A more modest change, raising $50 billion over ten years.
Repeal Exclusion of Interest on State & Local Bonds
Repealing the exclusion for state and municipal bonds could generate $250 billion.
Repealing tax-exempt status for private activity bonds would bring in an additional $114 billion.
Estate Tax Repeal
Eliminating the estate tax, currently applicable to estates over $13.99 million, would cost $370 billion over ten years.
Exempting Americans Abroad from Income Tax
Options include raising the foreign-earned income exclusion (currently $130,000) or eliminating U.S. taxation on foreign-earned income—estimated cost: $100 billion.
Corporate Taxation Changes
Corporate Income Tax Rate Reductions
Lowering the corporate tax rate from 21% to 15% would cost $522 billion over ten years.
Lowering the rate to 20% would cost $73 billion.
Repealing the Corporate Alternative Minimum Tax (CAMT)
The 15% CAMT imposed by the Inflation Reduction Act would be eliminated, at a cost of $222 billion.
Repealing Green Energy Tax Credits
Tax credits for clean energy initiatives (such as carbon sequestration and electric vehicles) would be repealed, saving $796 billion.
Ending the Employee Retention Tax Credit (ERTC)
The ERTC was designed to support businesses during COVID-19. The proposal would extend the current moratorium on new claims and impose stricter fraud penalties, saving $70-$75 billion.
Nonprofit Taxation Changes
Expanding the Endowment Tax on Private Colleges
Increasing the excise tax on endowment income from 1.4% to 14% would generate $10 billion.
Changing the student calculation method for tax purposes could raise an additional $275 million.
Eliminating Nonprofit Status for Hospitals
Revoking hospitals' tax-exempt status could generate $260 billion over ten years.
IRS Enforcement & Funding Repeal
Repeal of IRS Enforcement Funding
The Inflation Reduction Act allocated supplemental funding to the IRS for enforcement. Repealing this funding would reduce outlays by $20 billion but also decrease tax revenue collections by $66.6 billion, resulting in a net cost of $46.6 billion over ten years.
These tax proposals represent significant shifts in federal taxation policy. While many of the proposed measures aim to reduce the tax burden on individuals and businesses, they also come with varying revenue trade-offs. Policymakers and taxpayers alike should closely monitor these discussions as they unfold in Congress.
As always, individuals and businesses should consult tax professionals to understand how these potential changes may impact them.
Disaster Readiness
Breaking Down the Latest Republican Tax Proposals for 2025
Breaking Down the Latest Republican Tax Proposals for 2025
On January 17, 2025, reports emerged detailing a list of tax proposals circulated by Republican members of Congress. These proposals suggest significant changes to individual, corporate, and nonprofit taxation, alongside modification in IRS enforcement fundig. Below, we summarize the key elements of these proposals and their estimated revenue impacts over the next decade.
Individual Taxation Changes
SALT Deduction Reform Options
The state and local tax (SALT) deduction cap of $10,000 expires at the end of the year. Several reform options have been proposed:
Repeal SALT Deduction: Eliminate SALT deductions, raising $1 trillion over ten years.
Make SALT Cap Permanent & Double for Married Couples: Maintain the $10,000 cap but increase it to $20,000 for married couples, for $100-$200 billion.
Increase Cap to $15,000/$30,000: Raise the deduction limit to $15,000 for individuals and $30,000 for married couples, costing $500 billion.
Limit Deduction to Property Taxes Only: Eliminate deductions for income and sales taxes while allowing uncapped property tax deductions, costing $300 billion.
Eliminate SALT Deduction for Businesses: Maintain the cap for individuals while removing the deduction for businesses, generating $310 billion in revenue.
Mortgage Interest Deduction Reform
Repeal Deduction for Primary Residences: This change could raise $1 trillion over ten years.
Lower the Deduction Cap to $500,000: A more modest change, raising $50 billion over ten years.
Repeal Exclusion of Interest on State & Local Bonds
Repealing the exclusion for state and municipal bonds could generate $250 billion.
Repealing tax-exempt status for private activity bonds would bring in an additional $114 billion.
Estate Tax Repeal
Eliminating the estate tax, currently applicable to estates over $13.99 million, would cost $370 billion over ten years.
Exempting Americans Abroad from Income Tax
Options include raising the foreign-earned income exclusion (currently $130,000) or eliminating U.S. taxation on foreign-earned income—estimated cost: $100 billion.
Corporate Taxation Changes
Corporate Income Tax Rate Reductions
Lowering the corporate tax rate from 21% to 15% would cost $522 billion over ten years.
Lowering the rate to 20% would cost $73 billion.
Repealing the Corporate Alternative Minimum Tax (CAMT)
The 15% CAMT imposed by the Inflation Reduction Act would be eliminated, at a cost of $222 billion.
Repealing Green Energy Tax Credits
Tax credits for clean energy initiatives (such as carbon sequestration and electric vehicles) would be repealed, saving $796 billion.
Ending the Employee Retention Tax Credit (ERTC)
The ERTC was designed to support businesses during COVID-19. The proposal would extend the current moratorium on new claims and impose stricter fraud penalties, saving $70-$75 billion.
Nonprofit Taxation Changes
Expanding the Endowment Tax on Private Colleges
Increasing the excise tax on endowment income from 1.4% to 14% would generate $10 billion.
Changing the student calculation method for tax purposes could raise an additional $275 million.
Eliminating Nonprofit Status for Hospitals
Revoking hospitals' tax-exempt status could generate $260 billion over ten years.
IRS Enforcement & Funding Repeal
Repeal of IRS Enforcement Funding
The Inflation Reduction Act allocated supplemental funding to the IRS for enforcement. Repealing this funding would reduce outlays by $20 billion but also decrease tax revenue collections by $66.6 billion, resulting in a net cost of $46.6 billion over ten years.
These tax proposals represent significant shifts in federal taxation policy. While many of the proposed measures aim to reduce the tax burden on individuals and businesses, they also come with varying revenue trade-offs. Policymakers and taxpayers alike should closely monitor these discussions as they unfold in Congress.
As always, individuals and businesses should consult tax professionals to understand how these potential changes may impact them.
Disaster Recovery
Breaking Down the Latest Republican Tax Proposals for 2025
Breaking Down the Latest Republican Tax Proposals for 2025
On January 17, 2025, reports emerged detailing a list of tax proposals circulated by Republican members of Congress. These proposals suggest significant changes to individual, corporate, and nonprofit taxation, alongside modification in IRS enforcement fundig. Below, we summarize the key elements of these proposals and their estimated revenue impacts over the next decade.
Individual Taxation Changes
SALT Deduction Reform Options
The state and local tax (SALT) deduction cap of $10,000 expires at the end of the year. Several reform options have been proposed:
Repeal SALT Deduction: Eliminate SALT deductions, raising $1 trillion over ten years.
Make SALT Cap Permanent & Double for Married Couples: Maintain the $10,000 cap but increase it to $20,000 for married couples, for $100-$200 billion.
Increase Cap to $15,000/$30,000: Raise the deduction limit to $15,000 for individuals and $30,000 for married couples, costing $500 billion.
Limit Deduction to Property Taxes Only: Eliminate deductions for income and sales taxes while allowing uncapped property tax deductions, costing $300 billion.
Eliminate SALT Deduction for Businesses: Maintain the cap for individuals while removing the deduction for businesses, generating $310 billion in revenue.
Mortgage Interest Deduction Reform
Repeal Deduction for Primary Residences: This change could raise $1 trillion over ten years.
Lower the Deduction Cap to $500,000: A more modest change, raising $50 billion over ten years.
Repeal Exclusion of Interest on State & Local Bonds
Repealing the exclusion for state and municipal bonds could generate $250 billion.
Repealing tax-exempt status for private activity bonds would bring in an additional $114 billion.
Estate Tax Repeal
Eliminating the estate tax, currently applicable to estates over $13.99 million, would cost $370 billion over ten years.
Exempting Americans Abroad from Income Tax
Options include raising the foreign-earned income exclusion (currently $130,000) or eliminating U.S. taxation on foreign-earned income—estimated cost: $100 billion.
Corporate Taxation Changes
Corporate Income Tax Rate Reductions
Lowering the corporate tax rate from 21% to 15% would cost $522 billion over ten years.
Lowering the rate to 20% would cost $73 billion.
Repealing the Corporate Alternative Minimum Tax (CAMT)
The 15% CAMT imposed by the Inflation Reduction Act would be eliminated, at a cost of $222 billion.
Repealing Green Energy Tax Credits
Tax credits for clean energy initiatives (such as carbon sequestration and electric vehicles) would be repealed, saving $796 billion.
Ending the Employee Retention Tax Credit (ERTC)
The ERTC was designed to support businesses during COVID-19. The proposal would extend the current moratorium on new claims and impose stricter fraud penalties, saving $70-$75 billion.
Nonprofit Taxation Changes
Expanding the Endowment Tax on Private Colleges
Increasing the excise tax on endowment income from 1.4% to 14% would generate $10 billion.
Changing the student calculation method for tax purposes could raise an additional $275 million.
Eliminating Nonprofit Status for Hospitals
Revoking hospitals' tax-exempt status could generate $260 billion over ten years.
IRS Enforcement & Funding Repeal
Repeal of IRS Enforcement Funding
The Inflation Reduction Act allocated supplemental funding to the IRS for enforcement. Repealing this funding would reduce outlays by $20 billion but also decrease tax revenue collections by $66.6 billion, resulting in a net cost of $46.6 billion over ten years.
These tax proposals represent significant shifts in federal taxation policy. While many of the proposed measures aim to reduce the tax burden on individuals and businesses, they also come with varying revenue trade-offs. Policymakers and taxpayers alike should closely monitor these discussions as they unfold in Congress.
As always, individuals and businesses should consult tax professionals to understand how these potential changes may impact them.
ClimateTech
Breaking Down the Latest Republican Tax Proposals for 2025
Breaking Down the Latest Republican Tax Proposals for 2025
On January 17, 2025, reports emerged detailing a list of tax proposals circulated by Republican members of Congress. These proposals suggest significant changes to individual, corporate, and nonprofit taxation, alongside modification in IRS enforcement fundig. Below, we summarize the key elements of these proposals and their estimated revenue impacts over the next decade.
Individual Taxation Changes
SALT Deduction Reform Options
The state and local tax (SALT) deduction cap of $10,000 expires at the end of the year. Several reform options have been proposed:
Repeal SALT Deduction: Eliminate SALT deductions, raising $1 trillion over ten years.
Make SALT Cap Permanent & Double for Married Couples: Maintain the $10,000 cap but increase it to $20,000 for married couples, for $100-$200 billion.
Increase Cap to $15,000/$30,000: Raise the deduction limit to $15,000 for individuals and $30,000 for married couples, costing $500 billion.
Limit Deduction to Property Taxes Only: Eliminate deductions for income and sales taxes while allowing uncapped property tax deductions, costing $300 billion.
Eliminate SALT Deduction for Businesses: Maintain the cap for individuals while removing the deduction for businesses, generating $310 billion in revenue.
Mortgage Interest Deduction Reform
Repeal Deduction for Primary Residences: This change could raise $1 trillion over ten years.
Lower the Deduction Cap to $500,000: A more modest change, raising $50 billion over ten years.
Repeal Exclusion of Interest on State & Local Bonds
Repealing the exclusion for state and municipal bonds could generate $250 billion.
Repealing tax-exempt status for private activity bonds would bring in an additional $114 billion.
Estate Tax Repeal
Eliminating the estate tax, currently applicable to estates over $13.99 million, would cost $370 billion over ten years.
Exempting Americans Abroad from Income Tax
Options include raising the foreign-earned income exclusion (currently $130,000) or eliminating U.S. taxation on foreign-earned income—estimated cost: $100 billion.
Corporate Taxation Changes
Corporate Income Tax Rate Reductions
Lowering the corporate tax rate from 21% to 15% would cost $522 billion over ten years.
Lowering the rate to 20% would cost $73 billion.
Repealing the Corporate Alternative Minimum Tax (CAMT)
The 15% CAMT imposed by the Inflation Reduction Act would be eliminated, at a cost of $222 billion.
Repealing Green Energy Tax Credits
Tax credits for clean energy initiatives (such as carbon sequestration and electric vehicles) would be repealed, saving $796 billion.
Ending the Employee Retention Tax Credit (ERTC)
The ERTC was designed to support businesses during COVID-19. The proposal would extend the current moratorium on new claims and impose stricter fraud penalties, saving $70-$75 billion.
Nonprofit Taxation Changes
Expanding the Endowment Tax on Private Colleges
Increasing the excise tax on endowment income from 1.4% to 14% would generate $10 billion.
Changing the student calculation method for tax purposes could raise an additional $275 million.
Eliminating Nonprofit Status for Hospitals
Revoking hospitals' tax-exempt status could generate $260 billion over ten years.
IRS Enforcement & Funding Repeal
Repeal of IRS Enforcement Funding
The Inflation Reduction Act allocated supplemental funding to the IRS for enforcement. Repealing this funding would reduce outlays by $20 billion but also decrease tax revenue collections by $66.6 billion, resulting in a net cost of $46.6 billion over ten years.
These tax proposals represent significant shifts in federal taxation policy. While many of the proposed measures aim to reduce the tax burden on individuals and businesses, they also come with varying revenue trade-offs. Policymakers and taxpayers alike should closely monitor these discussions as they unfold in Congress.
As always, individuals and businesses should consult tax professionals to understand how these potential changes may impact them.
Program Updates
Breaking Down the Latest Republican Tax Proposals for 2025
Breaking Down the Latest Republican Tax Proposals for 2025
On January 17, 2025, reports emerged detailing a list of tax proposals circulated by Republican members of Congress. These proposals suggest significant changes to individual, corporate, and nonprofit taxation, alongside modification in IRS enforcement fundig. Below, we summarize the key elements of these proposals and their estimated revenue impacts over the next decade.
Individual Taxation Changes
SALT Deduction Reform Options
The state and local tax (SALT) deduction cap of $10,000 expires at the end of the year. Several reform options have been proposed:
Repeal SALT Deduction: Eliminate SALT deductions, raising $1 trillion over ten years.
Make SALT Cap Permanent & Double for Married Couples: Maintain the $10,000 cap but increase it to $20,000 for married couples, for $100-$200 billion.
Increase Cap to $15,000/$30,000: Raise the deduction limit to $15,000 for individuals and $30,000 for married couples, costing $500 billion.
Limit Deduction to Property Taxes Only: Eliminate deductions for income and sales taxes while allowing uncapped property tax deductions, costing $300 billion.
Eliminate SALT Deduction for Businesses: Maintain the cap for individuals while removing the deduction for businesses, generating $310 billion in revenue.
Mortgage Interest Deduction Reform
Repeal Deduction for Primary Residences: This change could raise $1 trillion over ten years.
Lower the Deduction Cap to $500,000: A more modest change, raising $50 billion over ten years.
Repeal Exclusion of Interest on State & Local Bonds
Repealing the exclusion for state and municipal bonds could generate $250 billion.
Repealing tax-exempt status for private activity bonds would bring in an additional $114 billion.
Estate Tax Repeal
Eliminating the estate tax, currently applicable to estates over $13.99 million, would cost $370 billion over ten years.
Exempting Americans Abroad from Income Tax
Options include raising the foreign-earned income exclusion (currently $130,000) or eliminating U.S. taxation on foreign-earned income—estimated cost: $100 billion.
Corporate Taxation Changes
Corporate Income Tax Rate Reductions
Lowering the corporate tax rate from 21% to 15% would cost $522 billion over ten years.
Lowering the rate to 20% would cost $73 billion.
Repealing the Corporate Alternative Minimum Tax (CAMT)
The 15% CAMT imposed by the Inflation Reduction Act would be eliminated, at a cost of $222 billion.
Repealing Green Energy Tax Credits
Tax credits for clean energy initiatives (such as carbon sequestration and electric vehicles) would be repealed, saving $796 billion.
Ending the Employee Retention Tax Credit (ERTC)
The ERTC was designed to support businesses during COVID-19. The proposal would extend the current moratorium on new claims and impose stricter fraud penalties, saving $70-$75 billion.
Nonprofit Taxation Changes
Expanding the Endowment Tax on Private Colleges
Increasing the excise tax on endowment income from 1.4% to 14% would generate $10 billion.
Changing the student calculation method for tax purposes could raise an additional $275 million.
Eliminating Nonprofit Status for Hospitals
Revoking hospitals' tax-exempt status could generate $260 billion over ten years.
IRS Enforcement & Funding Repeal
Repeal of IRS Enforcement Funding
The Inflation Reduction Act allocated supplemental funding to the IRS for enforcement. Repealing this funding would reduce outlays by $20 billion but also decrease tax revenue collections by $66.6 billion, resulting in a net cost of $46.6 billion over ten years.
These tax proposals represent significant shifts in federal taxation policy. While many of the proposed measures aim to reduce the tax burden on individuals and businesses, they also come with varying revenue trade-offs. Policymakers and taxpayers alike should closely monitor these discussions as they unfold in Congress.
As always, individuals and businesses should consult tax professionals to understand how these potential changes may impact them.
IRS Updates
Breaking Down the Latest Republican Tax Proposals for 2025
Breaking Down the Latest Republican Tax Proposals for 2025
On January 17, 2025, reports emerged detailing a list of tax proposals circulated by Republican members of Congress. These proposals suggest significant changes to individual, corporate, and nonprofit taxation, alongside modification in IRS enforcement fundig. Below, we summarize the key elements of these proposals and their estimated revenue impacts over the next decade.
Individual Taxation Changes
SALT Deduction Reform Options
The state and local tax (SALT) deduction cap of $10,000 expires at the end of the year. Several reform options have been proposed:
Repeal SALT Deduction: Eliminate SALT deductions, raising $1 trillion over ten years.
Make SALT Cap Permanent & Double for Married Couples: Maintain the $10,000 cap but increase it to $20,000 for married couples, for $100-$200 billion.
Increase Cap to $15,000/$30,000: Raise the deduction limit to $15,000 for individuals and $30,000 for married couples, costing $500 billion.
Limit Deduction to Property Taxes Only: Eliminate deductions for income and sales taxes while allowing uncapped property tax deductions, costing $300 billion.
Eliminate SALT Deduction for Businesses: Maintain the cap for individuals while removing the deduction for businesses, generating $310 billion in revenue.
Mortgage Interest Deduction Reform
Repeal Deduction for Primary Residences: This change could raise $1 trillion over ten years.
Lower the Deduction Cap to $500,000: A more modest change, raising $50 billion over ten years.
Repeal Exclusion of Interest on State & Local Bonds
Repealing the exclusion for state and municipal bonds could generate $250 billion.
Repealing tax-exempt status for private activity bonds would bring in an additional $114 billion.
Estate Tax Repeal
Eliminating the estate tax, currently applicable to estates over $13.99 million, would cost $370 billion over ten years.
Exempting Americans Abroad from Income Tax
Options include raising the foreign-earned income exclusion (currently $130,000) or eliminating U.S. taxation on foreign-earned income—estimated cost: $100 billion.
Corporate Taxation Changes
Corporate Income Tax Rate Reductions
Lowering the corporate tax rate from 21% to 15% would cost $522 billion over ten years.
Lowering the rate to 20% would cost $73 billion.
Repealing the Corporate Alternative Minimum Tax (CAMT)
The 15% CAMT imposed by the Inflation Reduction Act would be eliminated, at a cost of $222 billion.
Repealing Green Energy Tax Credits
Tax credits for clean energy initiatives (such as carbon sequestration and electric vehicles) would be repealed, saving $796 billion.
Ending the Employee Retention Tax Credit (ERTC)
The ERTC was designed to support businesses during COVID-19. The proposal would extend the current moratorium on new claims and impose stricter fraud penalties, saving $70-$75 billion.
Nonprofit Taxation Changes
Expanding the Endowment Tax on Private Colleges
Increasing the excise tax on endowment income from 1.4% to 14% would generate $10 billion.
Changing the student calculation method for tax purposes could raise an additional $275 million.
Eliminating Nonprofit Status for Hospitals
Revoking hospitals' tax-exempt status could generate $260 billion over ten years.
IRS Enforcement & Funding Repeal
Repeal of IRS Enforcement Funding
The Inflation Reduction Act allocated supplemental funding to the IRS for enforcement. Repealing this funding would reduce outlays by $20 billion but also decrease tax revenue collections by $66.6 billion, resulting in a net cost of $46.6 billion over ten years.
These tax proposals represent significant shifts in federal taxation policy. While many of the proposed measures aim to reduce the tax burden on individuals and businesses, they also come with varying revenue trade-offs. Policymakers and taxpayers alike should closely monitor these discussions as they unfold in Congress.
As always, individuals and businesses should consult tax professionals to understand how these potential changes may impact them.
Tax Tips
Breaking Down the Latest Republican Tax Proposals for 2025
Breaking Down the Latest Republican Tax Proposals for 2025
On January 17, 2025, reports emerged detailing a list of tax proposals circulated by Republican members of Congress. These proposals suggest significant changes to individual, corporate, and nonprofit taxation, alongside modification in IRS enforcement fundig. Below, we summarize the key elements of these proposals and their estimated revenue impacts over the next decade.
Individual Taxation Changes
SALT Deduction Reform Options
The state and local tax (SALT) deduction cap of $10,000 expires at the end of the year. Several reform options have been proposed:
Repeal SALT Deduction: Eliminate SALT deductions, raising $1 trillion over ten years.
Make SALT Cap Permanent & Double for Married Couples: Maintain the $10,000 cap but increase it to $20,000 for married couples, for $100-$200 billion.
Increase Cap to $15,000/$30,000: Raise the deduction limit to $15,000 for individuals and $30,000 for married couples, costing $500 billion.
Limit Deduction to Property Taxes Only: Eliminate deductions for income and sales taxes while allowing uncapped property tax deductions, costing $300 billion.
Eliminate SALT Deduction for Businesses: Maintain the cap for individuals while removing the deduction for businesses, generating $310 billion in revenue.
Mortgage Interest Deduction Reform
Repeal Deduction for Primary Residences: This change could raise $1 trillion over ten years.
Lower the Deduction Cap to $500,000: A more modest change, raising $50 billion over ten years.
Repeal Exclusion of Interest on State & Local Bonds
Repealing the exclusion for state and municipal bonds could generate $250 billion.
Repealing tax-exempt status for private activity bonds would bring in an additional $114 billion.
Estate Tax Repeal
Eliminating the estate tax, currently applicable to estates over $13.99 million, would cost $370 billion over ten years.
Exempting Americans Abroad from Income Tax
Options include raising the foreign-earned income exclusion (currently $130,000) or eliminating U.S. taxation on foreign-earned income—estimated cost: $100 billion.
Corporate Taxation Changes
Corporate Income Tax Rate Reductions
Lowering the corporate tax rate from 21% to 15% would cost $522 billion over ten years.
Lowering the rate to 20% would cost $73 billion.
Repealing the Corporate Alternative Minimum Tax (CAMT)
The 15% CAMT imposed by the Inflation Reduction Act would be eliminated, at a cost of $222 billion.
Repealing Green Energy Tax Credits
Tax credits for clean energy initiatives (such as carbon sequestration and electric vehicles) would be repealed, saving $796 billion.
Ending the Employee Retention Tax Credit (ERTC)
The ERTC was designed to support businesses during COVID-19. The proposal would extend the current moratorium on new claims and impose stricter fraud penalties, saving $70-$75 billion.
Nonprofit Taxation Changes
Expanding the Endowment Tax on Private Colleges
Increasing the excise tax on endowment income from 1.4% to 14% would generate $10 billion.
Changing the student calculation method for tax purposes could raise an additional $275 million.
Eliminating Nonprofit Status for Hospitals
Revoking hospitals' tax-exempt status could generate $260 billion over ten years.
IRS Enforcement & Funding Repeal
Repeal of IRS Enforcement Funding
The Inflation Reduction Act allocated supplemental funding to the IRS for enforcement. Repealing this funding would reduce outlays by $20 billion but also decrease tax revenue collections by $66.6 billion, resulting in a net cost of $46.6 billion over ten years.
These tax proposals represent significant shifts in federal taxation policy. While many of the proposed measures aim to reduce the tax burden on individuals and businesses, they also come with varying revenue trade-offs. Policymakers and taxpayers alike should closely monitor these discussions as they unfold in Congress.
As always, individuals and businesses should consult tax professionals to understand how these potential changes may impact them.
ERC Company News
Breaking Down the Latest Republican Tax Proposals for 2025
Breaking Down the Latest Republican Tax Proposals for 2025
On January 17, 2025, reports emerged detailing a list of tax proposals circulated by Republican members of Congress. These proposals suggest significant changes to individual, corporate, and nonprofit taxation, alongside modification in IRS enforcement fundig. Below, we summarize the key elements of these proposals and their estimated revenue impacts over the next decade.
Individual Taxation Changes
SALT Deduction Reform Options
The state and local tax (SALT) deduction cap of $10,000 expires at the end of the year. Several reform options have been proposed:
Repeal SALT Deduction: Eliminate SALT deductions, raising $1 trillion over ten years.
Make SALT Cap Permanent & Double for Married Couples: Maintain the $10,000 cap but increase it to $20,000 for married couples, for $100-$200 billion.
Increase Cap to $15,000/$30,000: Raise the deduction limit to $15,000 for individuals and $30,000 for married couples, costing $500 billion.
Limit Deduction to Property Taxes Only: Eliminate deductions for income and sales taxes while allowing uncapped property tax deductions, costing $300 billion.
Eliminate SALT Deduction for Businesses: Maintain the cap for individuals while removing the deduction for businesses, generating $310 billion in revenue.
Mortgage Interest Deduction Reform
Repeal Deduction for Primary Residences: This change could raise $1 trillion over ten years.
Lower the Deduction Cap to $500,000: A more modest change, raising $50 billion over ten years.
Repeal Exclusion of Interest on State & Local Bonds
Repealing the exclusion for state and municipal bonds could generate $250 billion.
Repealing tax-exempt status for private activity bonds would bring in an additional $114 billion.
Estate Tax Repeal
Eliminating the estate tax, currently applicable to estates over $13.99 million, would cost $370 billion over ten years.
Exempting Americans Abroad from Income Tax
Options include raising the foreign-earned income exclusion (currently $130,000) or eliminating U.S. taxation on foreign-earned income—estimated cost: $100 billion.
Corporate Taxation Changes
Corporate Income Tax Rate Reductions
Lowering the corporate tax rate from 21% to 15% would cost $522 billion over ten years.
Lowering the rate to 20% would cost $73 billion.
Repealing the Corporate Alternative Minimum Tax (CAMT)
The 15% CAMT imposed by the Inflation Reduction Act would be eliminated, at a cost of $222 billion.
Repealing Green Energy Tax Credits
Tax credits for clean energy initiatives (such as carbon sequestration and electric vehicles) would be repealed, saving $796 billion.
Ending the Employee Retention Tax Credit (ERTC)
The ERTC was designed to support businesses during COVID-19. The proposal would extend the current moratorium on new claims and impose stricter fraud penalties, saving $70-$75 billion.
Nonprofit Taxation Changes
Expanding the Endowment Tax on Private Colleges
Increasing the excise tax on endowment income from 1.4% to 14% would generate $10 billion.
Changing the student calculation method for tax purposes could raise an additional $275 million.
Eliminating Nonprofit Status for Hospitals
Revoking hospitals' tax-exempt status could generate $260 billion over ten years.
IRS Enforcement & Funding Repeal
Repeal of IRS Enforcement Funding
The Inflation Reduction Act allocated supplemental funding to the IRS for enforcement. Repealing this funding would reduce outlays by $20 billion but also decrease tax revenue collections by $66.6 billion, resulting in a net cost of $46.6 billion over ten years.
These tax proposals represent significant shifts in federal taxation policy. While many of the proposed measures aim to reduce the tax burden on individuals and businesses, they also come with varying revenue trade-offs. Policymakers and taxpayers alike should closely monitor these discussions as they unfold in Congress.
As always, individuals and businesses should consult tax professionals to understand how these potential changes may impact them.
Hear What Our Clients Say
Job Search Agency - FL
"The Economic Recovery team was outstanding with our ERC tax credit. They were highly communicative, very thorough, and their attention to details provided us comfort should anything need to be reviewed. We are recommending them to other companies we do business with as well."
Veteran Non-Profit - IN
"Thank you so much for providing your service. As a non-profit the majority of our help is volunteer. We didn't think we would qualify for this program. Thanks to your team we not only qualified, we will also make up for our shortfall from our last 2 years of little activity in our Donor Campaigns."
Medical Facility - FL
"As an essential business there was no thought to applying for the Employee Retention Credit program. Once we explored all of the various companies providing the same service, we knew we made the right decision when they asked to speak with our in-house legal department first, not just pushing a contract."
Tech Firm - NY
"Our CPA said we did not qualify because we broke even in 2020 and made money in 2021 even though we had to change our entire business. When we spoke with Economic Recovery we found out that we qualified and had ERC available above our 2 PPP grants, we were amazed. They understand this program inside and out."
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