As of April 2025, President Donald Trump and congressional Republicans are pushing to make the 2017 Tax Cuts and Jobs Act (TCJA) permanent. The TCJA, which initially lowered tax rates for individuals and corporations, is set to expire at the end of 2025. Extending these cuts could cost the federal government between $4 trillion and $11.2 trillion over the next decade, according to analyses from the Congressional Budget Office and the Committee for a Responsible Federal Budget.
The proposed extension includes new deductions and aims to eliminate taxes on tips, Social Security income, and overtime pay. However, critics argue that the benefits would disproportionately favor the wealthiest Americans, with the top 0.1% potentially receiving significant tax cuts. Additionally, concerns have been raised about the potential impact on the national debt and long-term economic growth.
The debate continues as lawmakers work to reconcile differing proposals and address the fiscal implications of extending the TCJA.