Cross-border Tax Talks

US Election Results: What’s next for tax 

Doug McHoney (PwC’s International Tax Services Global Leader) is joined by Rohit Kumar, PwC’s National Tax Co-leader and former deputy chief of staff to Senator Mitch McConnell (R) to discuss the US election results. Doug and Rohit cover what the republican-controlled House, Senate and Presidency means for tax reform, why 2025 will be a year for significant “must-pass” tax legislation, the role the federal debt and budget deficit will play, the potential implementation of tariffs, the fate of the OECD’s Pillar One and Two, as well as how the new administration could approach digital services taxes (DSTs). 

Timestamps:

• 1:30 – What happened in the US Federal elections? 
• 4:15 – How do the House and Senate fill vacancies? 
• 6:00 – Do the results of the election mean President-elect Trump can do whatever he wants? 
• 8:00 - Why is tariff policy easier to implement than tax policy?  
• 11:10 – What should we expect regarding tariffs in relation to Mexico? 
• 14:35 – Which of President-elect Trump’s campaign tax proposals might we see? 
• 16:40 – Are the 2017 TCJA international provisions set to change? 
• 19:00 – What is the total cost of extending all of the 2017 TCJA provisions? 
• 22:20 – How can a slim majority in Congress affect the likelihood of passing tax legislation? 
• 24:00 – What could happen to some of the other expiring TCJA tax provisions like the R&D expensing and interest expense limitation? 
• 27:00 – What impact will the US election results have on the enactment of Pillar One? 
• 28:50 – What approach do we think a second Trump Administration will take to digital services taxes (DSTs)? 
• 31:10 – Does revenue generated from tariffs go into scoring of a tax bill? 
• 33:10 – How will the second Trump Administration approach Pillar Two? 
• 38:15 – Any considerations for foreign headquartered multinationals investing in the United States 
• 41:20 – Do we expect the July 2024 “Defending American Jobs and Investment Act” proposed by House Republicans to be enacted in this new Administration? 

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