[ad_1]
Senate debates taxes ahead of Trump’s 2025 expirations. It’s a ‘make-or-break moment,’ lawmaker says
With trillions in tax breaks scheduled to expire after 2025, lawmakers are debating policy priorities that could impact millions of families and small businesses.
Enacted by former President Donald Trump in 2017, the Tax Cuts and Jobs Act, or TCJA, made sweeping tax changes, including temporary provisions that will sunset after 2025 without action from Congress.
The law also permanently reduced the top corporate tax rate to 21%.
Some of the expiring TCJA provisions include lower federal income tax brackets, bigger standard deductions, a more generous child tax credit, higher gift and estate tax exemptions and a 20% tax break for pass-through businesses, among others.
“This will be a make-or-break moment for the federal budget and for America’s middle class,” Senate Finance Committee Chairman Ron Wyden, D-Ore., said in a prepared statement at a Senate hearing on Thursday.
More from Personal Finance:
Here’s the deflation breakdown for August 2024 — in one chart
Homeowners may be overconfident in their retirement readiness
Avoid ‘knee-jerk reactions’ to candidates’ proposed tax increases, advisors say
If temporary TCJA provisions expire after 2025, more than 60% of tax filers could face increased taxes, according to estimates from the Tax Foundation.
But with future control of the White House and Congress uncertain, it’s hard to predict which provisions, if any, will be extended among competing priorities.
In the meantime, lawmakers and organizations are voicing support for certain tax issues before the 2025 deadline.
[ad_2]
Source link