Document Type
Article
Publication Date
12-2024
Abstract
The year 2025 promises to be important in U.S. tax history for three reasons. First, the expiration of the individual provisions of the Tax Cuts and Jobs Act means that Congress is very likely to enact important tax legislation to prevent tax increases for millions of individual taxpayers. Second, a new administration frequently means tax legislation, typically through budget reconciliation if the same party controls Congress (1981, 1993, 2001, 2017, 2022). Third, the trifecta of Supreme Court decisions in 2024 (Moore, Corner Post, and Loper Bright) suggests that there may be a spike in litigation challenging various tax provisions as unconstitutional or illegal, prompting Congress to enact modifying legislation.
The key issue for 2025 is what to do about the expiring TCJA provisions, and whether other TCJA provisions should be modified to pay for the extension of expiring provisions and other reforms. I recommend that Congress:
- lets section 199A (the passthrough deduction) expire;
- retains and improves the corporate alternative minimum tax; and
- repeals subpart F and the global intangible low-taxed income rule for corporations subject to the corporate AMT.
Recommended Citation
Avi-Yonah, Reuven S. "Three Proposals for Fixing the TCJA." Tax Notes International 116, no. 9 (2024): 1453.
Comments
Reprinted with the permission of Tax Analysts.