Biden Plans to Let Trump-Era Tax Cuts Expire, Resulting in Higher Rates

The article highlights:

President Biden vowed to let massive components of the Tax Cuts and Jobs Act expire next year if he wins re-election, meaning millions of Americans could soon face steeper tax bills.

• Biden tweeted recently, “Donald Trump was very proud of his $2 trillion tax cut that overwhelmingly benefited the wealthy and biggest corporations and exploded the federal debt. That tax cut is going to expire. If I’m reelected, it’s going to stay expired.”

• The 2017 legislation overhauled the tax code, including reducing the top individual income tax bracket to 37 percent from 39.6 percent and nearly doubling the size of the standard deduction.

• The changes will sunset in 2025, meaning that taxpayers, including those who earn less than $400,000, will face steeper tax levies if the law is not extended.

• A senior economist with the Tax Foundation said, “If lawmakers allow full expiration to occur, most Americans will see their personal tax bills rise and incentives for working and investing worsen.”

• Donald Trump has pledged to make the tax cuts permanent if he is re-elected in November.