President-elect Donald Trump’s election was premised in part on his guarantee to deliver a stronger, more competitive, and more resilient nation. Federal tax changes to be enacted in 2025 must reinforce that mandate by making permanent two critical provisions from the 2017 Tax Cuts and Jobs Act.
America’s tax code should enhance our internal dynamism while also boosting our global competitiveness. Two tax policies stand out for achieving these goals. First, the federal tax code should maximally incentivize inter-state competition by nixing tax subsidies for profligate tax-and-spend states. This can be achieved by permanently capping the federal deduction for state and local taxes, or SALT, paid. In addition, the federal tax code must maximally incentivize production in America by permanently providing 100% bonus depreciation for all capital expenditures.
American…
