Gratitude and Growth: Reflecting on the Year While Planning for the Future
As the year nears its close, December is a natural time for reflection. It’s a moment to pause and take stock of the journey we’ve walked, the goals we’ve achieved, the challenges we’ve overcome, and even the surprises that tested our resolve. This season invites gratitude—not just for what has been accomplished, but also for the possibilities that still lie ahead.
While the calendar year is almost over, there is still time to make meaningful changes. Businesses and individuals alike have an opportunity to reflect and act, ensuring they finish strong. For many, this includes considering the financial and tax landscape that has evolved over the past year—particularly in light of recent elections.
The Election is Over; the Impact is Not
We find ourselves in a strange position. Post-election periods often herald adjustments in tax policies, and we have known for some time that change is on the horizon as far as current tax law is concerned. We now have a shift of power looking to make changes, but at what cost?
The Tax Cuts and Jobs Act (TCJA), enacted in 2017, introduced sweeping tax reforms for individuals, businesses, and corporations. However, many provisions within the TCJA are set to expire at the end of 2025, sparking discussions about what might happen in the aftermath of the recent election.
We have repeatedly shared the key provisions set to sunset and the impact on taxpayers. President-elect Trump has stated he will either extend or make permanent most of these expiring provisions. While this is welcome news to business owners and individual taxpayers, the sheer cost of extending these provisions is mind-boggling. The original act was passed using the budget reconciliation process, and most likely will need to be done using this method again. Simply put, this means it must pay for itself. Varying estimates of the cost to extend “as is” range between $4 and $5 trillion over the next 10 years, likely leading to an all-out “dog-fight” to make this cross the finish line. The expiration of the TCJA provisions signals a pivotal moment for tax policy. Whether Congress decides to extend, modify, or let these provisions lapse will shape our tax landscape for years.
What can we do in the meantime? While year-end is fast approaching, there’s still time to reflect, act, and plan. By aligning gratitude with purposeful action, individuals and businesses can take advantage of opportunities amid change.
Next Steps
As the winds of change blow through tax policy, staying informed and proactive will position you for success—not just in closing out this year but in setting a strong foundation for the next.
To learn more, please join Marla Miller and me for our year-end tax planning webinar, Post-Election Tax Update: Insights, Projections & Planning, as we expand on tips to prepare for year-end and discuss our outlook on what lies ahead.
