2025 Looms as Fiscal Cliff for Trump Tax Cuts with Economic and Political Implications

As key provisions of the 2017 Tax Cuts and Jobs Act are set to expire, the outcome of the 2024 elections could dictate the future of U.S. tax policy.

The 2017 Tax Cuts and Jobs Act is facing expiration at the end of 2025, potentially leading to significant tax increases for millions of Americans.
If re-elected, Trump and the Republicans may extend the tax cuts, while a Biden victory could see many provisions expire, impacting middle-class taxpayers.
The Budget Lab at Yale predicts that extending the tax cuts could boost short-term economic growth, but the long-term benefits are debatable.
Alternative proposals like the Clausing-Sarin plan suggest comprehensive tax reforms that could address budget deficits and increase tax progressivity.
The upcoming presidential and congressional elections will play a crucial role in determining the direction of U.S. tax policy amid fiscal pressures.