Original article written by legacy firm, Harris Group Advisors (2025)
To kick off the new year, Harris hosted the highly anticipated Economic & Tax Symposium, a pivotal event for business professionals looking to gain key insights into the 2025 financial outlook, economic trends, and upcoming developments in tax laws. Held in January at The Hotel Renegade in downtown Boise, this year’s dynamic lineup of speakers brought their expertise to the forefront, offering actionable perspectives on navigating an evolving business landscape.
Featured Speakers
- Steve Scranton, CFA – Chief Economist, Washington Trust Bank
- Renae Davis, CPA – Tax Partner, KDP Advisors
- Todd Ames, CPA – Office Managing Partner, Harris
Whether it was forecasts for the 2025 financial outlook or critical tax updates for the upcoming filing season, attendees walked away well-equipped to position their businesses for success.
Key Takeaways from the Symposium
2025 Financial Outlook and Economic Insights from Steve Scranton
Steve Scranton, a veteran economist, provided a detailed breakdown of the U.S. and regional economies, helping attendees grasp critical factors influencing business decisions in 2025.
Highlights from Scranton’s Discussion:
- Robust Economic Growth: Consumer spending remains a strong driver, with GDP growth averaging around 3% since early 2023. Stable job growth serves as a foundation for overall economic stability.
- Interest Rates: While the Federal Reserve has slowed rate hikes, Scranton projected minimal reductions in long-term rates unless significant economic slowdown or inflation progress occurs. Predictions suggest mortgage rates may fluctuate between 6% to 7.5% by the end of 2025.
- Inflation Challenges: Inflation remains an issue, and consumer concerns persist as wages lag behind real cost-of-living increases. Scranton emphasized the importance of monitoring signals of financial stress among consumers, particularly those in lower-income brackets.
- Risks to Watch: Consumers’ ability to maintain spending is a critical risk for economic health. Increasing consumer debt delinquency and credit card charge-off rates highlight potential vulnerabilities despite positive economic indicators.
Additionally, Scranton explored Idaho’s unique position of economic strength, with job creation and labor force growth outpacing national averages. However, he cautioned that housing affordability and wage disparities could present growing pains for the state.
Tax Updates from Renae Davis and Todd Ames
Renae Davis and Todd Ames delivered an impactful session concentrating on evolving tax legislation and practical strategies for 2025 financial outlook and tax planning. Their discussion centered around the impending expiration of provisions from the 2017 Tax Cuts and Jobs Act (TCJA) and potential legislative changes introduced by the new administration.
Key Taxation Topics Covered:
- Sunsetting Provisions of the TCJA in 2025
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- Rising Personal Income Tax Rates: Tax brackets will revert to pre-TCJA rates, with the highest rate rising back to 39.6%. Brackets will also narrow, increasing tax exposure for many individuals.
- Elimination of the Qualified Business Income Deduction (QBI): The 20% deduction for passthrough entities (such as S corporations and partnerships) is set to expire, potentially increasing effective tax rates for small and mid-sized businesses.
- Estate and Gift Tax Implications: The lifetime exemption amount will reduce significantly in 2026, from approximately $14 million per individual to $7 million. Proper planning is critical for high-net-worth families.
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- Potential Legislative Updates
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- Corporate Tax Reduction Proposals: Discussions include reducing the corporate tax rate to 20% or even 15% for domestic manufacturers creating opportunities for businesses to reassess their entity structure.
- Support for R&D Investment: Bipartisan support exists for restoring the ability to immediately expense research and experimentation (R&E) costs, which would provide relief for innovative firms.
- Energy Policy Shifts: Potential repeal of incentives for renewable energy as the administration favors more traditional energy sources.
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- Tax Planning Recommendations
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- Extending tax returns to take advantage of any legislative changes enacted late in the year.
- Identify income and expense deferral or acceleration opportunities depending on finalized tax rates.
- Review entity structures to determine if a C Corp becomes more advantageous under proposed tax rate changes.
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2025 Financial Outlook in Action – What Should You Do?
Planning amidst legislative uncertainty is challenging, but proactive steps taken now can mitigate financial risks and maximize opportunities. Businesses and individuals should begin conversations with their accounting professionals to explore potential strategies, including tax benefit maximization and contingency planning. The shared insights from this year’s symposium underscored that preparation is critical in navigating 2025’s evolving landscape.
Contact a dedicated advisor to learn more about how Sorren can support your economic and tax needs.
Thank You to Our Speakers and Attendees
We extend our gratitude to our speakers, Steve Scranton, Renae Davis, and Todd Ames, for sharing their invaluable expertise. And, of course, thank you to all our attendees for making the 2025 Economic & Tax Symposium a resounding success. We look forward to seeing you at next year’s event!
(This article was originally published by Harris Group Advisors https://harrisgroupadvisors.com/2025-financial-outlook-symposium-overview/ , a legacy firm of Sorren.)
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