Economics were a major factor in the 2024 Presidential Election, but tax policy was largely overlooked. President-elect Donald Trump’s first term marked the most significant tax reform in decades, the Tax Cuts and Jobs Act, and the act is set to expire at the end of next year. Western Governors University School of Business tax expert Jim Franklin explains what may be in store during Trump’s second term and how a majority-Republican government will shape tax policies.

“We know there will be a Republican president, and it appears the Republican Party will have the majority in both chambers of Congress. That means Republicans will be able to pass a tax bill along party lines, similar to how Democrats passed the Inflation Reduction Act using budget reconciliation. This would allow Republicans to pass key policies with a simple majority,” said Franklin. “Republicans have traditionally supported lower tax rates for businesses and individuals, as well as tax incentives to help boost economic activity.”