🚨Trump Tax Cuts Update‼️
The Tax Cuts and Jobs Act (TCJA), enacted in 2017, is set to expire in 2025.
💥Key Provisions Expiring
🔹️Individual Income Tax Cuts: Expiring on December 31, 2025
🔸️Estate Tax Provisions: Expiring on December 31, 2025
🔹️Business Provisions: Some business provisions will also expire
💥Estimated Cost
🔹️Revenue Decrease: Extending the expiring TCJA provisions would decrease federal tax revenue by $4.5 trillion from 2025 to 2034
💥Economic Impact
🔹️Long-run GDP: Increase by 1.1%, offsetting $710 billion of the revenue losses
🔸️Long-run GNP: Only rise by 0.4% due to higher interest payments on debt going to foreigners
💥Proposed Extensions
🔹️Permanent Extension: President Trump has called for permanent extension of the 2017 tax cuts
🔸️Additional Policies: No taxes on tips, overtime pay, and Social Security benefits for retirees, and creation of a deduction for auto loan interest for American-made cars
💥New Tariffs
🔹️Higher Taxes on US Imports: Trump has proposed higher taxes on US imports through new tariffs, which could offset the economic benefits of tax cuts
💥Potential Effects on Taxpayers
🔹️Tax Increase: Without Congressional action, 62% of taxpayers could face a tax increase relative to current policy in 2026
🔸️After-Tax Incomes: Extending the TCJA provisions would increase after-tax incomes by 2.9% on average
💥Current Status
🔹️Budget Reconciliation: Lawmakers are using the budget reconciliation process to enact new tax cuts
🔸️Deficit Increase: The resolution allows for $5.3 trillion in deficit-financed tax cuts, with potential implications for the national debt
