By David Zaiken

In a world characterized by business volatility, tax considerations often find themselves sidelined in
strategic planning discussions. Integrating tax into these decisions is critical in capturing value and managing risk efficiently. Tax is just as volatile as the business concern is itself. Combining the strategy yields high
value strategic thinking.

Companies are increasingly forming collaborations with tax advisers to stay informed about tax changes that might impact their operations and strategic plans. Tax issues, inherently complex, touch on a wide array of topics, from trade and supply, manufacturing locations as well as immigration, with actions in one area potentially triggering tax consequences in seemingly unrelated areas. This complexity highlights the risk of missing out on available tax credits and incentives as well at tax rate efficiency when tax isn’t woven into strategic planning discussions.

The importance of tax planning for business leaders is significant and it helps drive cash flow. For businesses, understanding potential tax policy changes, especially those influenced by election outcomes, is key to anticipating impacts on their short and long-term outlooks.

Looking ahead to 2025, Congress is expected to pass tax legislation with a focus on extending provisions of the 2017 Tax Cuts and Jobs Act (TCJA). This extension carries a hefty price tag of approximately $4.6 trillion. Additionally, proposals introduced by President-elect Donald Trump, such as eliminating taxes on overtime and offering a 15% corporate rate for domestic manufacturing, could further affect tax policies, with an estimated cost of $3.8 trillion over a decade. Rapid changes in trade policy, such as the introduction of new tariffs, could prompt companies to rethink their supply chains and business structures to align with evolving trade policies. Manufacturing and other functional locations become prime strategic discussion. Being nimble yields high rewards.

For businesses seeking to enhance their integration of tax into decision-making, the path forward involves several steps. First, evaluating the current interactions between decision-makers and tax advisers is essential to ensure regular meetings and timely sharing of tax analyses. Implementing direct communication channels and establishing a strategic consultation schedule with tax advisers is the next step. Finally, revisiting these processes regularly will ensure they continue to meet the evolving needs of the organization, particularly as it grows and faces new tax, regulatory, and legislative challenges.

For forward-thinking companies, having tax advisers at the table during strategic decision-making offers benefits that extend beyond the current planning cycle. By reviewing and improving the integration of tax into their business strategies, these organizations will be better equipped to navigate potential tax changes under new governance, ensuring more effective management of their business operations.

Tax and executive management should be working hand-in-hand to monitor the quickly changing environment and react quickly and appropriately.