As the presidential election approaches, experts are sounding the alarm about the looming expiration of the Tax Cuts and Jobs Act of 2017 (TCJA).
Without congressional action, trillions of dollars in tax cuts enacted by former President Donald Trump through the TCJA will expire after 2025. The outcome of the 2024 election will determine which political party handles the expiring tax cuts and will shape the American tax system for years to come.
“If the 2017 tax cuts expire after 2025, About 62% of taxpayers will see a tax increase.“That's because the TCJA provided a tax cut for the vast majority of taxpayers,” said Erica York, senior economist and research director at the Tax Foundation.
Surveys show that a majority of Americans, 56%, believe they already pay too much in federal income tax. Gallup Poll, April 2024Meanwhile, the survey found that only 22% believe they receive valuable services in return. AP-NORC Survey From January 2024.
Republican presidential nominee Trump and Democratic candidate Vice President Kamala Harris both want tax reform that could affect millions of Americans, and while there is some overlap in their ideas, such as expanding the child tax credit and exempting tips from taxes, they take different approaches.
“Everything we have to do should be aimed at one goal, which is to increase our economic growth rate,” Stephen Moore, an economic adviser to the Trump campaign, told CNBC.
The Harris campaign did not provide comment in time to join this report.
look video See above for more details on how Harris and Trump plan to approach taxes if they each win the White House.
