Congress moves forward on 2025 budget: Key tax changes to watch
After narrowly avoiding a government shutdown last month, Congress has resumed work on passing a formal budget resolution before the current fiscal year ends. On Thursday, April 10, 2025, the House of Representatives approved the Senate’s proposed framework for the 2025 federal budget. With both chambers now aligned, lawmakers are moving into the reconciliation process to negotiate and finalize the legislation.
The proposed budget includes significant tax policy changes consistent with President Trump’s priorities. A major component is the extension of several provisions from the 2017 Tax Cuts and Jobs Act (TCJA), many of which are set to expire at the end of 2025. In addition to these extensions, lawmakers are considering raising the cap on the state and local tax (SALT) deduction—currently limited to $10,000—and eliminating federal taxes on tips
As the legislative process moves forward, taxpayers should begin preparing for potential changes, especially those relying on expiring TCJA provisions. It’s important to stay informed on new developments and consult with tax professionals to understand how these changes may affect both individual and business tax planning.
McDonald Hopkins’ tax attorneys continue to closely monitor the budget process and will continue to provide timely insights. Our team is committed to keeping our clients and contacts informed about key developments, legislative changes, and potential impacts on you and your business. Stay tuned for strategic guidance to help you navigate the evolving tax landscape.
