Tax Legislation
Can You Expense a Building? Maybe…
Date: 4/30/2025 | Author: Bill McDevitt, CPA
In a surprising announcement yesterday, Treasury Secretary Scott Bessent called full expensing “one of the most powerful parts of President Trump’s 2017 tax bill” and revealed plans to make it retroactive to January 20th. But that’s not all—it’s expanding.
“We’re also looking to add full expensing for factories,” Bessent said. “So bring your factory back. You can fully expense the equipment and the building.”
The takeaway? This proposal appears to be narrowly focused on incentivizing businesses to reshore manufacturing operations. Whether it becomes law—and under what conditions—remains to be seen, but the potential tax benefit is significant.
Renewing the American Dream Act
Date: 4/24/2025 | Author: Bill McDevitt, CPA
House Republicans are planning to bring Tax Legislation to the floor during the week of May 19, which is the final week the House is in session before the Memorial Day recess.
This timeline makes it unlikely that the Tax Legislation will reach the President’s desk before Memorial Day—a target date that few considered realistic to begin with. It remains to be seen whether the package will be ready for a floor vote by the week of May 19, as significant work remains. Drafting the legislative language is only part of the challenge; reaching consensus on what to include and exclude is often more difficult.
The working title of the Republican reconciliation package is the “Renewing the American Dream Act.” It is yet to be determined whether President Trump will accept this title or its acronym, RADA.
Senate Republicans Unveil Revised Budget Reconciliation Bill
Date: 4/4/2025 | Author: Bill McDevitt, CPA
This week, Senate Republicans unveiled a new version of the budget reconciliation bill. Key points include:
- $3 Billion in immediate spending cuts, with an expected total of $1.5-$2 Trillion in cuts.
- Tax cuts potentially totaling up to $5.2 Trillion.
- A $5 Trillion increase in the debt ceiling.
The Senate sets a $1.5 Trillion cap on tax cuts. Republicans plan to use the “current policy baseline” tactic to suggest that extending Trump’s 2017 tax cuts will cost nothing.
The GOP aims for the $5 Trillion debt ceiling increase to last until after the 2026 midterms.
The House and Senate must adopt identical budget resolutions before they can draft and pass the whole law. The Senate hopes to pass the modified bill this weekend, to have the House adopt it before their two-week Easter recess.
Speaker Mike Johnson aims to get the package to President Trump’s desk by Memorial Day, though some GOP senators believe it will take longer.
Time will tell—stay tuned!
Big Beautiful Bill
Date: 3/12/2025 | Author: Bill McDevitt, CPA
Speaker Johnson said today that he plans to get a vote in the House on the so-called “Big Beautiful Bill” by Easter, April 20, 2025.
He hopes that the bill can be passed by the Senate and signed into law by Memorial Day, May 26, 2025.
This is very ambitious timing, but given the speed at which things are happening in Washington now, it may be possible.
Time will tell…
The Budget Advanced by the House Contains Approval for $4.5 Trillion in Tax Cuts
Date: 3/5/2025 | Author: Stephanie Holston, CPA
The budget advanced by the House contains approval for $4.5 trillion in tax cuts. However, the Trump administration has an ambitious agenda regarding tax policy, which quickly adds up to more than what’s been approved.
The estimated costs of some of the proposals are:
- Extension of the TCJA provisions – $4 trillion
- Removal of the SALT deduction cap – $200 billion
- Exemption of tips from income – $100 billion
- Exemption of overtime from income – $300 billion
- Exemption of all social security payments from income – $600 billion
The total of the above comes to $5.2 trillion—and these are just some of the proposals. Now begins the negotiations, so it remains to be seen what will be in and what will be out.
In addition to that tug of war, how these tax cuts are scored also matters. We will continue to keep you informed as the budget moves through Congress.
Tale of Two Budget Bills
Date: 2/27/2025 | Author: Bill McDevitt, CPA
Last week, the House and the Senate each passed a budget bill that contains a budget resolution framework.
The bills were passed on a partisan line, with razor-thin margins.
The Senate approach is a small bill that does not address changes to tax law; they intend to address tax changes in the second bill later this year.
The approach in the House is much more comprehensive. The so-called “One Big Beautiful Bill” addresses many subjects, including tax reform.
The President prefers the “One Big Beautiful Bill” path.
So, what happens now?
At some point, the two chambers will need to agree on a single framework; let the arm-twisting and “Horse Trading” commence.
How Can You Pass Tax Legislation Without 60 Votes in the Senate?
Author: Bill McDevitt, CPA
Normally, the Senate needs 60 votes to pass tax legislation. However, the budget reconciliation process requires only a simple majority.
The following are the basic aspects of the budget reconciliation process:
Step 1: Congress passes a budget resolution. This resolution instructs House and Senate committees to write parts of the bill and how much to change spending or revenue. In other words, limits are set on the bill’s cost over a period, usually ten years.
Step 2: Committees write a bill that follows the instructions in the budget resolution.
Step 3: Committees mark up their bills. This is where the horse-trading happens. Often, there are more things that Congress wants to do than there is room in the budget resolution.
Step 4: The committee bills are packaged into a single reconciliation package. One in the House passes with a simple majority (as usual), and one in the Senate also passes with a simple majority (rather than the normal 60 votes).
Step 5: If we have two different reconciliation packages, what happens now? There will be more horse-trading until there is a single reconciliation bill.
Step 6: Both the full House and Senate must vote again to approve the reconciliation bill.
Step 7: The bill is signed into law by the President.
Because of the thin majorities in both the House and the Senate, just a few members can hold the progress hostage, until they get what they want. It will be interesting to watch. We will do our best to keep you up to date with this WG Tax Legislation Watch blog. At this point, if you are as old as me, you may be hearing the Schoolhouse Rock song “I’m Just a Bill” in your head. I know that I am.
For a more detailed analyisis of the budget reconciliation process, click here.
If you have questions or require additional information, please contact your WG advisor.
President Trump met with House GOP
Author: Bill McDevitt, CPA
Trump met with House GOP leadership yesterday. The stated goal of the House is to outline the main points of the bill by the end of the day today. Hold hearings next week and pass the legislation in April. Ambitious goals… Senate leadership is meeting with the President at Mar-a-Lago today. The Senate has stated that they first want to pass legislation to fund Trump’s deportation plan and complete the border wall. The Senate plans to take up tax legislation later this year.
Questions? Ask a WG Advisor
Bill McDevitt
CPA, CVA
This blog is intended to provide general information on potential tax law changes under consideration in Washington. The topics discussed reflect legislative proposals and ongoing developments; however, not all provisions may ultimately be enacted into law. There is no guarantee regarding the final content, timing, or passage of any tax legislation. The information presented should not be relied upon as tax, legal, or financial advice. For guidance on how potential changes may impact your specific situation, consult with a qualified tax professional.
