The first 100 days of President Trump’s administration brought several tax-related proposals and policy shifts that may affect both individual and business taxpayers. While the long-term outcomes remain to be seen, early changes offer a glimpse into potential opportunities and areas requiring additional planning. Below is a summary of the key developments and how Maddox Thomson & Associates is helping clients navigate this evolving landscape.

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Tariff Implementation

As part of the administration’s effort to balance revenue losses from tax reductions, a universal 10% tariff on imports was announced under the “Liberation Day” initiative, with higher rates applied to select countries. These changes have been partially reflected in the market, resulting in capital losses for some investors, while others have viewed this as an opportunity to reposition and invest at lower valuations.

As tariffs are constantly changing, and negotiations between the United States and other countries are underway, we will continue to assist our clients in evaluating how tariff-related market activity may influence their taxes.

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The “Big, Beautiful Bill”

A new legislative package, referred to as the “Big, Beautiful Bill,” was introduced with the goal of delivering broad tax cuts. Proposals include eliminating taxes on tips, Social Security benefits, and overtime pay. As with any large legislative initiative, discussions continue regarding funding and implementation timelines.

We monitor the status of federal tax legislation and provide timely guidance to help clients understand potential implications and adjust tax planning as needed.

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Corporate Tax Rate Reduction

A proposal was made to lower the corporate tax rate from 21% to 18%, with the intent to encourage investment and stimulate economic growth. Supporters see this as a means to improve U.S. competitiveness. At the same time, analysts are assessing the broader fiscal effects.

Our team supports businesses in planning for current and future tax scenarios, helping clients align their entity structures and tax strategies with any potential rate changes.

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Proposed Budget Adjustments

To help offset the cost of the proposed tax reductions, the administration has introduced a plan to reduce federal spending by $163 billion, targeting areas such as education, housing, and environmental programs. These budget considerations are part of the broader fiscal framework tied to the tax proposals.

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IRS Leadership Changes

Since January, five individuals have held the position of IRS commissioner, and the agency has experienced a notable shift in personnel, with tens of thousands of workers departing. Despite this turnover, most tax returns have been processed without interruption, and no systemic delays have been reported so far.

We maintain consistent communication with the IRS on behalf of our clients and stay current on procedural changes. Our goal is to help ensure accurate, timely filings and to advocate effectively in the event of inquiries or changes.

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Looking Ahead

While it remains early in the administration, the tax policy landscape is already seeing movement. At Maddox Thomson & Associates, we remain focused on delivering customized tax planning and proactive guidance to help individuals and closely held businesses make informed decisions in a shifting environment.

Have questions about how these developments might affect your tax strategy? Contact our team today to schedule a consultation.