Highlights from the president’s first speech to a joint session of Congress
PWC March 7, 2025
President Trump addressed a joint session of Congress on Tuesday, March 4, 2025, making it clear that he intends to continue the course he set when he took office on January 20. He reaffirmed broad-based tax cuts, increased tariffs, deregulation of US business, increased domestic energy production, along with maintaining America’s leadership in artificial intelligence (AI) and other critical technologies. He praised the work of the Department of Government Efficiency (DOGE) for cutting the size of government, the new measures to restrict border crossings, and his own “America First” approach to foreign policy.
To what extent — and in what manner — President Trump will deliver on all of his promises depends in part on Congress, the courts and economic and geopolitical developments. US businesses can and should act to navigate this uncertain and fast-changing environment in five key areas.
President Trump called for permanent tax cuts for all Americans, likely a reference to proposals to make the 2017 Tax Cuts and Jobs Act permanent. He did not specify if he favors a “one big bill” approach to reconciliation tax legislation, as seen in the House’s budget resolution. Even if the precise timing and nature of tax reform remain uncertain, Republicans are united in wanting to pass tax legislation — otherwise nearly all Americans would face tax increases.
Other proposals included ending tax on tips, overtime and Social Security benefits; offering tax relief for manufacturing with 100% expensing retroactive to January 2025 and making interest payments on car loans tax-deductible for cars made in America. Time will tell if Congress and the fiscal scenario permit all these proposals to be enacted. Businesses also could be affected by potential revenue-raising measures that Congress is reported to be considering to limit the cost of any final bill.
What to do
- Model scenarios. Whether it’s one reconciliation bill that would cover immigration and border security, tax issues and spending, or a two-bill strategy, assess how potential shifts in tax law could affect your cash flow, investments and overall tax liabilities.
- Make your voice heard. Engage with policymakers to build public support for tax and trade policies that promote growth and business investment. Some tax legislation is likely to pass this year — this is your opportunity to shape it.
- Capture new value. Leadership — including COOs and tax leaders — should be planning now for value chain transformation that can leverage new tax incentives.
