In the USA the Internal Revenue Service administers the tax policy and rates. The IRS manages the US tax system in which they decide the policies, rates, issues refunds, processes the tax returns and many more. Now following the presidential elections Trump has come into force and will manage the US economy for the second time. He will experience a second term in the white house. With all powers he can change the tax policies, pass new acts or bills and many more. The Major IRS Reforms Coming In 2025 By Trump 2.0 becomes a topic for discussion as all want to know the reforms in the tax policies and how these policies or reforms can impact the international tax policies. For the next four years how these reforms can impact the individuals, businesses, and other countries. As Trump will serve a second term in White house the economy is expecting the changes by Trump 2.0.
Major IRS Reforms Coming In 2025 By Trump 2.0
The Major IRS Reforms Coming In 2025 By Trump 2.0 includes Tax Cuts and Jobs Act Provision which was introduced in 2017. As in 2025 these provisions are going to expire and now Trump can make this provision permanent or expand this. As this can reduce the tax burden from the individuals, businesses. Trump has not yet provided the detailed tax plan for this 2025 but he commented on some of the tax law and policies areas. As he promised to lower the corporate tax rate currently at 21% to 15%. The cuts in tax rates consequences can be seen outside the USA as the cuts cost will be offset by the import tariffs revenues. Trump will impose more import tariffs in 2025. These can be some of the reforms that can be seen in the IRS Tax policy and this reform will be beneficial for the US residents but not for immigrants and other countries.
Internal Revenue Service Reforms By Trump 2.0- Overview
| Post Title | Major IRS Reforms Coming In 2025 By Trump 2.0 |
| Year | 2025 |
| Name of the Country | USA |
| Managing Authority | Internal Revenue Service |
| IRS Reforms 2025 | Changes in Tax Policy |
| Reforms by | Donald Trump |
| Objective | Cut Down Tax Rates For Corporates |
| Cut Percentage | 15% |
| Post Category | Finance |
| Official Web Page | www.irs.gov |
IRS Tax Reforms 2025
As on 8th November 2024 Trump comments on some tax policies including the international taxes, corporate taxes, individual taxes and estate, Gift and GST Tax. We will see here all the Trump Proposals and all we will know about the current tax policies.
International Taxes Under Trump’s Administration:
| Section | Provision Name | Current Policy | Trump Proposal |
| Section 250 | Foreign Derived Intangible Income | The current tax rate is 13.125% | The Tax deduction for FDII is going to be reduced after 2025 by raising the tax rate to 16.4%. |
| Section 951A | Global Intangible Low Taxed Income | 10.5% | Extend to 13.125% after 2025 |
| Section 59A | Base Erosion & Anti abuse Tax | 10% | Extend to 12.5% after 2025 |
Corporate/ Business Taxes Under Trump’s Administration:
| Section | Provision Name | Current Policy | Trump Proposal |
| Section 11 | Corporate Income Tax Rate | 21% | Reduced to 20% or 15% for US Companies |
| Section 4968 | University Endowment Tax | 1.4% Excise tax | Rate will be raised |
| Section 1061 | Carried Interest | Top Rate 20% & Ordinary Rates will get expires after 2025 | Make it permanent or extend this |
| Section 1400Z-1 & 1400Z-2 | Qualified Opportunity Zone Investment | If the reinvestment of the assets in QOF is done in 180 days the reduction of gain will be held for 5 to 7 years. | Extend the rule as this will expire after 2025 |
| Section 168(k) | Bonus Depreciation | 40% in 2025 | Make permanent 100% bonus depreciation |
Individual Taxes Under Trump’s Administration:
| Section | Provision Name | Current Policy | Trump Proposal |
| Section 1 | Individual Tax Rates | 10%, 12%, 22%, 24%, 32%, 35%, 37% | Replace the tax rates |
| Section 1(h) | Capital Gain Tax Rate | 0%, 15%, 20%, 28% | Reduction of Top long term Capital Gain Tax Rate to 15% |
| Section 164 | SALT Deduction | $10,000 | Elimination of the SALT Cap |
| Section 24 | Child Tax Credit | $2000 per children | Increased to $5000 per children |
Fact Check: US Trump 2.0 IRS Reforms 2025
Donald Trump following the presidential Elections gained all the powers and second term in white house. After the Oath all the duties will be performed by Donald Trump. Trump on 8th November commented on the tax policy and discussed his tax proposal. The provided reforms or changes in the Tax law are reliable as stated by Trump. But there can be chances that these proposals can be rejected. We can only rely on these proposals when they become effective.
FAQ Related To Major IRS Changes By Trump 2.0 In 2025
The changes in the tax policies are provided in the post.
We can’t fully rely on the proposals as they can be rejected.
Tariffs on foreign goods, Deportation of undocumented immigrants and many more can be part of Trump reforms other than tax policy.
No, till now Trump has not provided a detailed tax policy.
Yes, the international taxes will be raised.
