Say what you will about 2025 tax policy, but it certainly hasn’t been dull.
New tariffs have been announced, delayed, implemented, paused, increased, decreased, changed, challenged (and repeat). The federal government froze funding to more than 20 states, then a federal judge said the government couldn’t do that. What will happen tomorrow is anyone’s guess.
Import and export tax volatility is forcing businesses to rethink their global footprints and rework supply chains while striving to keep up with frequent tariff changes. Failure to pay mandatory duties can lead to delays at customs, increased costs, and unhappy customers. The pace of the tariff changes is making it difficult for businesses to fulfill all new requirements. And other tax policy changes could be coming.
Many if not all states will be given fewer federal dollars in 2025, and affected states may need to cut services, increase efficiencies, or find new sources of revenue. Increased audit activity or higher state and local taxes could therefore emerge.
