December 4, 2024 Washington Wire

NAIFA looks at how new Congress may focus on tax reform

Illustration of the U.S. Capitol Building with the large word "TAX" across the dome. New-Congress-will-focus-on-tax-reform.

By Susan Rupe

The Nov. 5 election is now history, and the nation and the financial services industry is looking ahead to see what a new administration and a new Congress will do after taking office in January. The National Association of Insurance and Financial Advisors predicted what the election could mean for the insurance and financial services industry during a recent webinar.

The 119^th Congress will convene on Jan. 3, with about 60 newly elected members joining its ranks. Congress is expected to focus on tax reform during the first 100 days of its session, said Diane Boyle, NAIFA senior vice president of government relations. With the 2017 Tax Cuts and Jobs Act’s individual tax cuts expiring in 2025, the Trump administration and the new Congress are expected to begin considering options to extend or replace these provisions.

President-elect Donald Trump favors tax proposals that Congress could consider, Boyle said. They include no tax on Social Security income, tax or overtime pay. Trump also called for tax deductions for car loan interest and family caregiver tax credits.

“All of those things would increase the cost of renewing the TCJA and we expect there will be a lot of negotiations,” she said.

Meanwhile, even though a battle over tax reform looms in Washington for 2025, Congress returned for its lame duck session this week and has several issues to consider before the clock runs out for the year.

Boyle gave a rundown of some of those issues, which include:

The National Defense Authorization Act for fiscal year 2025.
Taking action to prevent a government shutdown when the current continuing resolution expires on Dec. 20. Extensions of the Farm Bill and other temporary extensions, including flood insurance and telehealth provisions, which are set to expire along with the continuing resolution.
Emergency supplemental funding in response to natural disasters and emergencies.

Susan Rupe is editor in chief, magazine, for InsuranceNewsNet. She formerly served as communications director for an insurance agents' association and was an award-winning newspaper reporter and editor. Contact her at susan.rupe@innfeedback.com.