In 2025, the Trump administration is pushing to extend the 2017 Tax Cuts and Jobs Act (TCJA), set to expire at year’s end. Without action, most Americans could face higher taxes in 2026, with estimates suggesting a 22% average tax hike and a $1,700 increase for a typical family of four. President Trump’s proposal includes making the TCJA permanent, eliminating taxes on Social Security benefits and tip income, and introducing new income tax cuts to offset tariff-related costs. However, the plan could add up to $5.8 trillion to the national debt over a decade, prompting Republicans to propose $2 trillion in spending cuts targeting Medicaid, education, and green energy programs. Internal GOP divisions and Democratic opposition complicate the legislative process, with a June deadline looming. Additionally, Project 2025 advocates for a simplified tax code with two flat rates and reduced corporate taxes, potentially increasing the tax burden on middle-income households.
