As of February 2025, several significant tax law changes are under consideration or have been implemented across various jurisdictions:
United States
- Federal Tax Proposals: House Republicans have introduced a plan proposing $4.5 trillion in tax cuts over the next decade, alongside $1.5 trillion in spending reductions. The proposal includes a $4 trillion increase in the federal debt limit and allocates $300 billion for border enforcement and military spending. Key elements involve extending expiring tax cuts and introducing new reductions, though internal disagreements persist regarding the extent of these cuts and corresponding spending adjustments.
- Social Security Taxation: President Donald Trump has proposed eliminating taxes on Social Security benefits. Analyses suggest this change would predominantly benefit retirees that have sources of income other than Social Security, offering them substantial annual tax savings.
- State-Level Changes: In Texas, legislators are moving to close a property tax loophole that developers have exploited, resulting in significant revenue losses for local communities. This loophole involved housing finance corporations granting tax exemptions to developers, often without delivering on promised affordability.
International Developments
- Brazil: The government has proposed a tax reform targeting dividend payouts from companies with tax rates significantly below the national average. The reform aims to exempt individuals earning up to 5,000 reais monthly from income tax, potentially relieving 10 million additional citizens from tax obligations. To offset revenue losses, the proposal includes measures such as introducing a minimum tax rate for the wealthiest individuals and eliminating certain tax exemptions for high-income pensioners.
- United Kingdom: The UK Treasury has rejected proposals from farming groups to mitigate the impact of upcoming inheritance tax reforms on the agricultural sector. The reforms plan to impose a 20% levy on agricultural land exceeding specific thresholds starting in April 2026, a move that has faced significant opposition from the farming community and political figures concerned about its potential effects on rural economies and food security.
These developments reflect ongoing debates and legislative efforts aimed at overhauling tax systems to address economic disparities, revenue needs, and social equity concerns.