Donald Trump has been elected the 47th president of the United States. Throughout the election season, Trump took to the campaign trail with tax proposals that include making many of the expiring Tax Cuts and Jobs Act (TCJA) provisions permanent. Now the fate of these provisions is in the hands of Congress. Crowe LLP, a public accounting and consulting firm, reveals more on his tax proposals.

“Even though the House is still up for grabs, with Republicans controlling the Senate, Trump is significantly more likely to make good on many of the tax policies he has been campaigning on, including making popular provisions of the expiring TCJA permanent and increasing tariffs,” said Rochelle Hodes, Crowe Washington national tax principal. “Time is ticking for the TCJA, which will take center stage in Congress over the next year. With a Trump win and the Senate on his side there is a better chance of extending TCJA, but without offsets, the cost of making its expiring provisions permanent is significant.  For a party that is generally opposed to increased government spending, getting to a consensus on how to address that cost might be difficult. Taxpayers should continue to monitor developments and evaluate their current tax position to prepare for change – nothing is certain and there will be a lot on the table leading up to the TCJA cliff at the end of next year.”

Below are key aspects of the Trump campaign’s tax proposals, which may shed light on the tax policies he’ll advocate for in his administration. It will also be important to keep an eye on tariffs under a Trump administration.

Individual tax (including estate tax and gift tax)

Make most of the expiring TCJA provisions permanent, including the higher standard deduction, the lower top marginal tax rate, the lower capital gains rate, and the higher estate and gift tax exemption

Allow the TCJA limit on the deduction for state and local taxes to expire

Allow a deduction for interest on loans to purchase automobiles made in the U.S.

Allow a deduction for the cost of home generators in states hit by natural disasters

Expand qualifying tuition programs to cover homeschooling

Eliminate income tax on Social Security benefits

Exclude tips from income tax and payroll tax

Exclude overtime pay from tax, though it is unclear whether this applies solely to income tax or to both income and payroll tax

Eliminate double taxation for U.S. citizens overseas

Business tax

Decrease the corporate tax rate from 21% to 15%

Make the TCJA Section 199A pass-through business deduction permanent

Energy tax and real estate tax

Repeal energy tax incentives enacted under the Inflation Reduction Act

Provide tax incentives for first-time homebuyers

For more information, visit Election 2024: Tracking tax issues.