On January 5, in a social media posting, President-Elect Trump agreed to and endorsed a large single legislative bill approach (agreed to by House Speaker Mike Johnson) instead of the two-bill approach advocated by Senate Majority Leader John Thune. President-Elect Trump made reference to a one-power bill that addresses:

• Renewal of TCJA tax cuts
• Securing the border
• Unleashing American energy
• No tax on tips

The 15% corporate tax rate was not mentioned but presumably would still be part of the tax plan.

Speaker Johnson indicated that a large bill is preferable since it allows room to pull everything together, considering not everyone would agree at the outset on specific provisions. The Speaker also indicated a legislative timeline:

• Early February: Adoption of House Budget Reconciliation Process
• Early April: House vote on Budget Reconciliation
• April/May: Enactment

This indicates a potential legislative calendar that would need Republican consensus in both the House and Senate to pass a tax bill. The debt limit would also presumably be addressed as part of the Reconciliation process (the debt expires at the end of January).

Customs duties are still being discussed as potentially increasing early in the Trump administration.

These types of pronouncements indicate the tentative legislative schedule. Of course, time will tell regarding the outcomes and the dates of passage based on House/Senate consensus. It is important to monitor these events and ascertain what the legislative changes or TCJA extensions will or will not be. Planning ahead and modeling the outcomes, as well as making decisions regarding the corporation’s timing of income and expenses, is crucial.