As the 2024 presidential election approaches, the potential tax implications of a rematch between President Joe Biden and former President Donald Trump are coming into focus. With significant tax law changes slated for after 2025, the stakes are high for U.S. households. (source)
According to Howard Gleckman, a senior fellow at the Urban-Brookings Tax Policy Center, “If Congress doesn’t act, taxes will increase for the vast majority of U.S. households.” This is due to the expiration of individual tax provisions included in Trump’s signature tax overhaul, the Tax Cuts and Jobs Act, enacted in 2024. These provisions, set to sunset after 2025, include higher federal income tax brackets, a larger standard deduction, and a smaller child tax credit, among others.
Both Biden and Trump have expressed their tax priorities. Biden’s fiscal year 2024 budget expressed a desire to extend the individual expirations for those making less than $400,000. On the other hand, while Trump hasn’t shared many specifics for individual tax policy, it’s expected that he wants to make his individual cuts permanent.
“For 98% of taxpayers, President Biden wants to continue President Trump’s tax cuts,” said Erica York, senior economist and research manager with Tax Foundation’s Center for Federal Tax Policy. “The differences come out in what they would do with the rest of the tax code.”
As we approach the election, it’s crucial for voters to understand the potential tax implications of each candidate’s policies. The outcome could significantly impact U.S. households and the nation’s fiscal future.