
Former President Donald Trump is reaching across the aisle to extend his signature 2017 tax cuts, potentially reshaping the economic landscape for millions of Americans.
This is…big news. Yes, really big news. Since when have Democrats supported tax cuts?
At a Glance
- Key components of the 2017 Trump tax cuts are set to expire in 2025
- The average family could face a $1,500 tax increase if cuts expire
- Trump’s tax cuts led to significant increases in household income and wages
- Bipartisan effort aims to preserve economic benefits and stability
Trump’s Tax Cuts: A Legacy at Stake
The Ways and Means Committee is currently reviewing the 2017 Trump tax cuts as crucial elements are scheduled to sunset in 2025. These cuts, a cornerstone of Trump’s economic policy, have been credited with substantial economic growth. Within two years of implementation, the reforms led to a $5,000 increase in real median household income and a 4.9% rise in real wages.
The potential expiration of these tax cuts could have far-reaching consequences. If no action is taken, the average family of four earning $75,000 could face a $1,500 tax increase starting in 2026. This looming deadline has spurred former President Trump to seek bipartisan support for extending the cuts, recognizing the need for cooperation to maintain economic stability.
And it looks like he’s wining them over…
Impact on Businesses and Families
The expiration of the 2017 tax cuts could have significant ramifications for businesses and families alike. Main Street businesses might face a staggering 43.4% tax rate, while the Child Tax Credit could be halved. Furthermore, the death tax could impact more family-owned businesses, potentially forcing them to sell assets to cover tax obligations.
1.) Transition Spokesman on Senate Democrats saying Scott Bessent owes nearly $1M in taxes:
“Scott Bessent has paid his taxes. After providing thousands of pages of records through an exhaustive process, neither Senator Wyden nor his staff are able to provide any evidence that…
— Elizabeth MacDonald (@LizMacDonaldFOX) January 16, 2025
The 20% deduction for small businesses, a key component of the 2017 tax cuts, is also at risk of expiration. This could lead to substantially higher tax rates for these businesses, potentially stifling growth and job creation. The tax cuts are also credited with preventing American corporations from moving offshore and attracting new investments, a trend that could reverse if the cuts are allowed to expire.
While Trump seeks to extend his tax cuts, President Biden’s budget proposed $7 trillion in tax hikes, which would have affected families, farmers, and small businesses.
Thank goodness he’s gone!