Experts: Will the Tax Code Change Again If Trump Is Elected in 2024?
Written by
Chris Adam
Edited by
Ashley Barnett
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Donald Trump and Joe Biden have spent a great deal of time this campaign season talking about the cost of living, the economy and tax cuts. After all, many polls show the economy is a top concern among voters.
Here’s a breakdown of what the tax code might look like with each candidate in charge:
Tax Reforms Set to Expire
Americans want answers from the candidates about what they’ll do with the 2017 Tax Cuts and Jobs Act. It brought a major overhaul to the U.S. tax code – and many of the household tax reforms included in the bill expire in 2025.
According to the Congressional Budget Office, major elements of the individual income tax code that are set to expire include statutory tax rates and brackets, allowable deductions and the income levels at which the alternative minimum tax takes effect.
More Cuts Amid Growing Debt
So what happens in 2025 if Trump wins? According to the Brookings Institution, “Trump has actually pledged to make even more tax cuts – if that happens, obviously the deficit would grow even faster and the debt would be even larger.”
There has been a great deal of debate over the tax cuts in light of the growing federal debt. In fact, extending the 2017 tax cuts could cost an estimated extra $3.8 trillion over the next ten years.
Help for Middle-Income Voters
Biden and critics have said the cuts mainly help the wealthy. However, the increased standard deduction and the Child Tax Credit provisions help middle-income voters.
In addition to keeping the individual tax cuts, Trump has said he wants to keep corporate tax levels unchanged. According to Bloomberg, “Trump’s preference to keep the 21% corporate rate marks a shift from his desire while president to lower the corporate rate to 15%, which generated opposition from both Republicans and Democrats.”
As November draws near, expect to hear much more from Trump and Biden about their economic plans. Specifically, the changes they want to make to the tax code to benefit consumers and businesses.
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