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Subscribe23 JAN 2025 / ECONOMY
On January 20, 2025, under the grand dome of the U.S. Capitol, President Donald Trump took the oath of office for his second term. The inauguration wasn’t just a political ceremony—it was a meticulously orchestrated power play on both the cultural and economic stage. A-list celebrities, tech titans, billionaires, and political heavyweights all participated in the event. When Trump placed his hand on the Bible, he planned to hit the ground running. Day one was nothing short of explosive. Trump signed 26 executive orders, 12 memoranda, and 4 proclamations. Among the most controversial moves, he pardoned over 1,500 individuals tied to the January 6 Capitol riots, including those convicted of assaulting law enforcement officers. The decision sparked a firestorm of criticism, with law enforcement and Democrats calling it a betrayal of accountability. But that was just the beginning.
The President’s bold steps included ending birthright citizenship, restoring biological truth, tariffs, international tax deals, IRS hiring freeze and federal regulations. He framed his actions as a push toward a “golden age for America,” but the flurry of orders has left professionals in accounting, tax, and finance wondering how things will pan out over the next 4 years. Let’s unravel the details together.
One of Trump’s first executive orders effectively withdrew the U.S. from the global Corporate Minimum Tax agreement brokered under the Biden administration. This landmark deal, which established a 15% minimum tax rate for multinational corporations, aimed to curb tax avoidance and create a more level playing field internationally. Additionally, Trump has nominated Scott Bessent, whose career blends finance and public service, as Secretary of the Treasury. If confirmed, Bessent will take the lead on global tax affairs, positioning him as a pivotal figure in shaping international tax policies moving forward.
Trump dismissed the agreement as a threat to U.S. economic sovereignty, declaring it “null and void” without congressional approval. His administration also floated additional domestic tax cuts, including reducing the corporate tax rate from 21% to 18% and slashing the capital gains tax rate for high earners. While the moves may appeal to corporations and investors, opposition warns they could destabilize international tax collaboration and strain relationships with global allies.
As expected and promised during his election rallies, Trump targeted the IRS. He ordered an immediate hiring freeze, halting the filling of new and open positions. This move could impact the agency’s ability to manage upcoming tax filings, audits, and enforcement, potentially leading to delays for taxpayers and challenges for accounting and tax professionals. Critics argue that the freeze could weaken the IRS at a time when it is tasked with handling complex tax reforms and clearing backlogs from prior years. Adding to the uncertainty, IRS Commissioner Danny Werfel resigned on January 20, 2025, the same day as Trump’s inauguration.
However, according to a LinkedIn post by Melanie Lauridsen, Vice President of Tax Policy & Advocacy at the AICPA, the freeze likely won’t impact seasonal employees already hired for the 2025 tax season. Agencies retain the discretion to reallocate workers to maintain essential services. With all these events unfolding simultaneously, whether this freeze helps the IRS streamline operations or pushes it further into chaos remains to be seen. For now, accountants and taxpayers alike are bracing for a bumpy ride.
The President wasted no time reinstating his America-first energy policies. He declared a national energy emergency, fast-tracking permits for fossil fuel projects, and formally withdrew the U.S. from the World Health Organization (WHO) and the Paris Climate Agreement. “World Health ripped us off, everybody rips off the United States. It’s not going to happen anymore,” Trump said while signing the order. In Alaska, Trump’s orders included opening the Arctic National Wildlife Refuge to drilling and lifting restrictions on logging. These measures reversed Biden-era protections and reignited debates over balancing energy development with environmental conservation. These moves aim to maximize domestic oil and gas production but face fierce opposition from environmental advocates.
Trump’s rollback includes intentions to repeal the $7,500 EV tax credit introduced under the Inflation Reduction Act. On January 21, 2025, Trump aimed at electric vehicles (EVs) by revoking a 2021 executive order that set a goal for 50% of new cars sold in the U.S. to be electric by 2030. Calling EV incentives “market distortions,” the President also directed federal agencies to consider eliminating subsidies for EVs and halting funding for charging infrastructure expansion. The President’s sweeping changes signal a clear return to traditional energy priorities, but they also set the stage for intense legal battles and policy debates. The US president declared an energy emergency as he promised to “drill, baby, drill,” and said he would eliminate what he calls Biden’s electric vehicle mandate.
Trump ended remote work for government employees, insisting that everyone return to the office five days a week. He emphasized that he is not here to please anyone and wants the government to set the record straight regarding work, similar to other major tech companies that have ended work-from-home (WFH) formats. The Consumer Financial Protection Bureau (CFPB) is also on the chopping block as Trump sets his sights on "streamlining" government. Since its 2008 debut, the CFPB has clawed back over $21 billion for consumers, tackling shady banking practices. But Trump’s latest executive order slams the agency as “unaccountable” and a drag on businesses, setting the stage for its dismantling or overhaul. However, Jarod Facundo a reporter and tech giant Elon Musk tweeted to delete the CFPB with the below tweet:
On the other side, DOGE has already sparked legal challenges, with a suit filed by the National Security Counselors claiming it violates the Federal Advisory Committee Act 1972 by operating without required transparency. While Trump promises cost-cutting through bold moves like back-to-office policies and streamlining the CFPB, the opposition argues that these measures could undermine essential public services and protections when they are needed most.
President Trump’s announcement of 25% tariffs on Canadian and Mexican imports mirrors the economic protectionism championed by William McKinley, the 25th U.S. President. McKinley, who enacted the Dingley Tariff Act of 1897, raised tariffs significantly to shield American industries and labor, fostering domestic growth during his era.
While Trump’s tariffs aim to safeguard jobs and address trade imbalances, the modern global economy presents new challenges. Economists warn of strained supply chains, higher consumer costs, and disrupted relations with key trading partners. Unlike McKinley’s push for self-sufficient industrial growth, Trump’s policies must steer the complexities of global trade networks. In contrast, Canada and Mexico expressed strong opposition and indicated plans for retaliation. The Canadian government has prepared an initial list of C$150 billion (approximately $105 billion) worth of U.S.-manufactured items that could face tariffs in response to Trump's actions.
In a sweeping rollback of his predecessor’s policies, President Trump dismantled Diversity, Equity, and Inclusion (DEI) programs in federal agencies and issued an executive order redefining gender roles at the federal level. The order mandates that the government officially recognize only two sexes, male and female, based on immutable biological characteristics. “Sex shall refer to an individual’s immutable biological classification as either male or female,” the order states, explicitly excluding the concept of “gender identity.”
He also ordered the renaming of the Gulf of Mexico to the “Gulf of America” and Alaska’s Mount Denali to its previous name, Mount McKinley. “These are names that should reflect American greatness,” Trump declared, sparking immediate criticism from historians and indigenous groups.
Trump’s recognition of Bitcoin and other cryptocurrencies as legitimate assets under federal law represents a significant policy shift. This move spurred a 15% surge in Bitcoin prices and reignited institutional interest in digital currencies. The administration has also announced plans to explore blockchain technologies for government efficiency. In the amid Gary Gensler announced his resignation as SEC Chair effective January 20, 2025, coinciding with the inauguration of President Donald Trump. Following Gensler’s exit, Mark Uyeda has been appointed as the acting chair until Trump’s nominee, Paul Atkins, is confirmed.
On a forward-looking note, Trump and the First Lady also launched a memecoin days before the ceremony, raising eyebrows and sparking concerns over the intersection of political power and speculative markets. He is also planning are underway for the crypto task force.
Another promise during the election campaign turned into reality. The agenda took immediate effect with the reinstatement of the “Remain in Mexico” policy and a national emergency declaration at the southern border. An executive order ending birthright citizenship for children of undocumented immigrants ignited legal battles, with California and other states swiftly filing lawsuits to block the measure. Trump’s actions restored pre-2021 deportation criteria, prioritizing all undocumented immigrants for removal.
The administration also suspended the U.S. Refugee Admissions Program, paused the CBP One app, and eliminated policies protecting asylum seekers. Critics warn these actions will leave thousands stranded and vulnerable.
The swift policy shifts present both challenges and opportunities for accounting, tax, and finance professionals:
From pardoning January 6 defendants to redefining gender policy, renaming landmarks, temporarily suspending the TikTok ban, and renegotiating America’s role on the global stage, President Trump’s Day-One actions signal a dramatic shift in governance. Supporters herald these moves as bold and necessary steps to restore traditional values, national sovereignty, and economic dominance. Critics, however, caution that the sweeping changes may erode democratic norms, marginalize vulnerable communities, and disrupt international alliances.
With an eye to the future, a $500 billion private-sector initiative, Stargate, to build AI infrastructure in collaboration with OpenAI, SoftBank, and Oracle. The project includes 10 data centers under construction in Texas, with plans for nationwide expansion. As America embarks on this uncharted journey under Trump’s second term, the nation stands at a crossroads. The policies implemented today will reverberate across generations, challenging citizens, businesses, and institutions to adapt to a rapidly evolving landscape. For better or worse, this administration’s vision promises to leave an indelible mark on America’s identity and its place in the world. Subscribe to MYCPE ONE Insights for the latest in finance, accounting, and corporate news delivered straight to your inbox. Dive deeper into the impacts of Trump’s early policy shifts and earn your CPE credit along the way! Join our Self-Study Webinar and empower yourself with the knowledge every practitioner needs in 2025.
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