Gary Cohn breaks his silence on the economy amid growing concerns

On December 15, 2024, Gary Cohn, who serves as the vice chairman of IBM and was the economic adviser during the Trump administration, appeared on 'Face the Nation with Margaret Brennan.' During the interview, Cohn discussed the current economic environment, noting that wage growth has been bolstered by recent union contract renegotiations. Moreover, he emphasized that both the American consumer and corporate America have positive expectations for future policies under the Trump administration. Cohn reflected on the tax reform discussions that are anticipated in 2025. He highlighted the upcoming legislative sessions in Congress, which would provide the opportunity to address tax codes and regulations, particularly through reconciliation, which dictates budgetary limits for spending and revenue. Cohn mentioned that the business sector was generally satisfied with the tax reforms initiated in 2017, particularly regarding the corporate tax rate, which was set at 21%. The political landscape surrounding the tax discussion is expected to be complex, with many stakeholders involved. While Cohn acknowledged that there would be disagreements and varied opinions among business leaders regarding tax policy, he asserted the importance of finding a balanced plan that would drive economic growth, increase jobs, and raise wages. Cohn's insights serve to underline the optimistic economic sentiment that exists within corporate circles as effective policies are deliberated. Overall, 2025 is poised to be a critical year for U.S. tax legislation as Congress takes up the challenges of crafting a cohesive tax plan. With tensions and debates surrounding the specifics of these tax reforms, it will be essential for all parties to work collaboratively in order to nurture a thriving economic environment post-legislation.