With Second Tax Bill Possible, Businesses Must Line Up Targets

July 18, 2025, 8:30 AM UTC

Stakeholders are just starting to evaluate key tax policy changes in Republicans’ multi-trillion-dollar reconciliation package, including the long-term impact of several new and modified business tax reforms.

But less than two weeks after President Donald Trump signed the sprawling legislation into law, key congressional leaders, including House Budget Committee Chairman Jodey Arrington (R-Texas) and Senate Finance Committee Chairman Mike Crapo (R-Idaho), already have expressed interest in considering a second tax-and-spending package before the end of 2025.

While Congress prevented the expiration of key provisions from the 2017 tax bill, the potential for a second tax and spending package means industry must again prepare to advocate for their policy priorities and defend against adverse tax changes.

With less than six months left in 2025, businesses should consider the following measures that were used to navigate the new $3.4 trillion fiscal package known as the One Big Beautiful Bill to prepare for a second reconciliation process—which is possible under the rules because it will happen during a different fiscal year.

Engage congressional stakeholders early. Businesses should connect with congressional champions early in the process to communicate their legislative goals for existing or prospective tax policies that affect their business model.

Business engagement with policymakers on a second reconciliation package also may feature dialogue on tax policy changes enacted as part of the new Republican-passed law, including advocating for strengthening, modifying, or cleaning up new provisions, such as changes to the deductibility of gambling losses.

Because the reconciliation process allows for expedited consideration of tax legislation, early engagement builds a foundation for future advocacy efforts and accelerates the development of legislative proposals.

Early and frequent engagement with congressional champions is crucial when congressional committees may opt to forgo traditional markups and when legislative proposals are refined through high-level negotiations.

Don’t overlook the White House. Trump secured several tax policy victories in the new law, including limiting taxes on tips and overtime pay. With Trump’s tax policy team largely in place at the White House and Treasury Department, the administration is likely to engage directly with Congress once again on the president’s tax priorities in a second reconciliation package.

These priorities may include provisions that were left out of the new tax law, including changes to corporate tax rates for domestic manufacturers and changes to carried-interest rules.

Businesses should be mindful of these and other prospective tax priorities from the administration and engage with the White House and Treasury on mutual policy goals prior to and during a second reconciliation process.

Prepare for a coordinated and rapid response. Congress modified or removed several provisions from the new tax law between initial committee consideration in the House and the final Senate floor vote.

Several provisions, including a proposal to tax litigation proceeds, were removed after review by the Senate parliamentarian. Other dropped proposals, including addressing certain “unfair foreign taxes” and an excise tax on certain wind and solar energy equipment, prompted concerns from members of Congress and outside stakeholders.

Under a second reconciliation process, the House and Senate may try to reintroduce some of these removed provisions, meaning stakeholders should be prepared to respond to or mitigate similar proposals. A coordinated and rapid response to adverse proposals is key due to the expedited reconciliation process.

With the 2025 tax policy cliff averted and significant Republican tax priorities addressed through the new tax law, Congress’s second tax bill may include a narrower set of legislative priorities.

However, with a second reconciliation process potentially around the corner and new or revived tax policy proposals on the horizon, businesses and stakeholders should reflect on lessons learned from the recent reconciliation process and begin to take stock of their tax policy goals to ensure future success.

This article does not necessarily reflect the opinion of Bloomberg Industry Group, Inc., the publisher of Bloomberg Law, Bloomberg Tax, and Bloomberg Government, or its owners.

Author Information

David Stewart is a principal and the co-chair of Squire Patton Boggs’ global public policy practice group and previously was majority staff director to the House Ways and Means Committee.

Michael Hawthorne is an associate in Squire Patton Boggs’ public policy practice.

Write for Us: Author Guidelines

To contact the editors responsible for this story: Rebecca Baker at rbaker@bloombergindustry.com; Jessica Estepa at jestepa@bloombergindustry.com

Learn more about Bloomberg Tax or Log In to keep reading:

Learn About Bloomberg Tax

From research to software to news, find what you need to stay ahead.

Already a subscriber?

Log in to keep reading or access research tools.