Businesses Prepare for Lease Adjustments Amid Upcoming Tax Changes

20 June 2024

As loyal Vault readers know, the lead-up for Washington to confront the expiring Trump tax cuts at the end of 2025 is in full swing. That’s already playing out at full speed in the lobbying world, giving a hint of the frenzy to come and the money on the line next year. Big business groups are springing into action, and the downtown community is already watching key lawmakers’ every move.

It all spells business for Washington’s influence industry. Here’s a flavor of the lobbying registrations filed so far this year to give a sense of the intense interest already in the 2025 tax debate:

  • A handful of hires have directly cited the 2025 debate. Synopsys listed “preparation for the 2025 tax debate and R&D tax amortization” among issues in its Brownstein hire. Boston Scientific hired Hollier & Associates for issues including “reauthorization of TCJA” – a.k.a. the 2017 Trump tax cut law – and the American Property Owners Alliance brought on brand-new firm Phronesis DC for “TCJA expiration.” Blackstone’s recent hire of Hogan Policy Advisors lists “tax reform” among issues.
  • Then there are the companies bringing on lobbying power from the Trump world. Take the Business Roundtable’s hire of Tim Pataki, a Trump legislative affairs staffer now at CGCN, to work on “business tax issues, including the corporate tax rate.”
  • Plenty more hires list corporate taxes as a lobbying issue. That’s always a big one, of course, but companies are hyper-aware that if Democrats win any power in November, the 21% income tax rate is in jeopardy. Corporate tax issues are cited in registrations like Marathon Petroleum’s hire of FTI Government Affairs and Target’s hire of Stewart Strategies and Solutions.
  • Unsurprisingly, there’s no shortage of hires that mention reviving a bigger tax break for businesses’ research and development spending. Plus, the National Beer Wholesalers Association brought on Ingram Group and cited permanence for the 20% deduction for pass-through businesses, which is among the Trump tax cut provisions expiring next year.

Beyond K Street

Lawmakers are getting ready for the tax tussle too. House Ways and Means Committee Republicans set up “tax teams,” and panel members are having meetings with guest speakers, as we scooped. Senate Finance Committee Republicans have six working groups set up.

Finance panel Democrats are set for their own meeting today to launch their talks on 2025, which we scooped here. And then there’s the lawmakers angling to flex their muscles ahead of next year’s showdown. That list ranges from Sen. Elizabeth Warren (D-Mass.), who laid down a marker with her tax speech this week, to GOP opponents of the cap on deducting state and local taxes, who are thinking about how to battle their colleagues on the $10,000 limit.

It’s going to be a long, winding road to whatever happens with the expiring Trump tax cuts. Join us for the ride!

Laura Weiss

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Whats the urgency in addressing the expiring Trump tax cuts by 2025?

The urgency lies in preventing potential economic disruption. If the Trump tax cuts expire in 2025, individuals and businesses could face higher taxes, reducing disposable income and investment. Early legislative action can provide stability and allow for strategic financial planning.

Can Washington successfully confront the expiring Trump tax cuts by the end of 2025?

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