Overview

• 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.