TWR Podcast Episode 111: DOGE & Dollars

As the business world continues to adjust to the shifting economic landscape under the new administration, industry experts and thought leaders are closely analyzing how executive orders and fiscal policies are impacting small and medium-sized businesses.

In a recent conversation on The Woodard Report Podcast with Gene Marks, a seasoned columnist and business consultant, key insights emerged regarding the economic and regulatory shifts underway in February 2025.

Marks has written for outlets such as The Hill, The Philadelphia Inquirer, Forbes and The Guardian, and has appeared on both Fox News and MSNBC. He has spent years providing guidance to business leaders navigating political, economic and technological changes.

He operates The Marks Group PC, a consulting firm specializing in technology and business solutions, and frequently speaks at conferences and on major media platforms. His latest insights shed light on the most pressing issues facing businesses today, including federal budget concerns, the IRS, SBA, tariffs and the expiration of the Tax Cuts and Jobs Act.

Government efficiency and the DOGE initiative

A significant talking point has been the DOGE initiative, spearheaded by Elon Musk in collaboration with the Trump administration.

This effort aims to scrutinize and curtail government spending while promoting efficiency. Marks explains that while part of the initiative is symbolic, highlighting wasteful spending, it also serves as a tangible means to implement government-wide reforms.

But he emphasizes that despite efforts to cut inefficiencies, two-thirds of the federal budget is tied to mandatory spending, including Social Security, Medicare and defense.

As a result, the impact of these government-wide cuts may be limited in addressing the larger issues of national debt and deficit spending. Marks suggests that business leaders keep a close watch on court rulings, as many of these executive actions are likely to be challenged in the judicial system.

IRS layoffs and business implications

A major concern for accountants and business professionals is the recent layoffs within the IRS. While some worry that these reductions could impact the agency’s ability to support taxpayers, Marks argues that a leaner IRS could potentially operate more efficiently, similar to Musk’s restructuring of X (formerly known as Twitter).

He posits that cutting redundant roles and modernizing outdated systems may lead to a more streamlined and effective agency. Businesses should remain attentive but not overly concerned about disruptions during the current tax season.

Small Business Administration: To reform or abolish?

Marks also weighed in on the future of the Small Business Administration (SBA), questioning its overall impact and necessity. He noted that while the agency’s loan programs remain valuable, its advisory services are often underutilized.

Given past proposals to either integrate the SBA into other government departments or eliminate it entirely, Marks believes that a more targeted approach—focusing on financing rather than business consulting—could be a more effective use of resources.

If the SBA were to be dismantled, he argues, private sector and nonprofit organizations could fill the gap in business development services.

Navigating tariffs and trade policies

With the administration planning new tariffs, businesses that rely on imports are facing potential cost increases. Marks advises companies to consider four key strategies:

Stockpiling goods ahead of tariff implementation: While this requires capital and storage space, it may be financially beneficial in the long run.
Exploring alternative suppliers: Organizations like the World Trade Center Association can help businesses find new supply chain options.
Sourcing domestically: While sometimes more expensive, buying American-made products avoids tariffs altogether.
Utilizing foreign trade zones: Businesses can work with customs brokers to store materials in tariff-exempt zones, deferring or eliminating duties.

These proactive steps can help businesses mitigate the financial impact of new tariffs and maintain profitability.

The future of the tax cuts and jobs act

One of the most consequential legislative issues for businesses in 2025 is the expiration of the Tax Cuts and Jobs Act (TCJA). Marks notes that unless Congress acts, tax rates will increase, the standard deduction will shrink, and small business tax deductions will be eliminated.

While the administration has pledged to extend or make these cuts permanent, the challenge lies in balancing tax reductions with soaring national debt.

Marks predicts that estate taxes could be a focal point in negotiations, particularly given the significant wealth transfer expected in the coming years. While some argue against increasing estate taxes, others see them as a necessary tool to address fiscal concerns.

Business owners should prepare for potential shifts by working closely with financial advisors to structure their holdings accordingly.

Preparing for change

With uncertainty surrounding tax policy, trade regulations, and government spending, Marks advises businesses to stay informed and adaptable.

Whether it’s navigating new tariffs, adjusting to IRS changes or preparing for potential tax code revisions, proactive planning will be essential in 2025. By leveraging industry resources and expert insights, businesses can remain resilient in a rapidly evolving economic landscape.