Congress will face new challenges in 2024 as soon as it returns from holiday recess, including the need to introduce new stopgap funding bills. In addition, no matter who wins the 2024 election, Congress and the next president will have to deal with an expiring tax policy in 2025 that will force new tax policies, or else deal with a massive deficit.

Veda Partners Managing Partner Henrietta Treyz joins Yahoo Finance to discuss the 2024 election and the challenges Congress will face going forward.

"You're going to see tax rate legislation in 2025. It's a guarantee... This tax bill has to be written, it's mandatory," Treyz warns. "As a pure basis of where we are, just keeping the tax rates the same, not authorizing cuts to corporate rates or individual rates, just keeping rates the same for individuals into 2026 is going to cost $2.3 trillion."

For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.

Video Transcript

- Henrietta, while I have you, I want to switch gears here and talk a bit about the election because the Iowa caucuses are kind of coming up as well here, I mean, January 15th. And we know, Henrietta, Trump has had a consistent lead in the Iowa polls. I just was hoping, Henrietta, can you just bottom line this for us? Is it going to be Trump and Biden in 2024? Is that it? Can we say it's done at this point?

HENRIETTA TREYZ: I think it's done. I think it's been done for a very long time. You have four Republicans in the presidential wing who are barely hitting 30% collectively in the polls. I mean, Trump has a lock on the party. He has anywhere between 70% and 88% of the Republican conference voter base very willing to vote for him.

You know, I think at this point his campaign is really trying to manage expectations. So if he wins by 15 points instead of 33 in Iowa or by 10 points instead of 40 in South Carolina, it doesn't come off as a loss. None of the candidates, whether it's Nikki Haley, Ron DeSantis, Vivek Ramaswamy, or Chris Christie are even getting close to him in any of the states, including most importantly, probably South Carolina, where Nikki Haley obviously hails from, or New Hampshire where Chris Christie is betting all of his chips. I mean, these candidates don't have a chance.

- So Henrietta, I mean, we could spend a long time, going back and forth about then what's going to happen. But I'm curious. You gave us some things to watch out for regardless of who wins the presidential election in terms of what investors need to be watching. One of the important ones is tax policy. Walk us through that.