The next year could reshape America.
Donald Trump recently celebrated the seventh anniversary of the Tax Cuts and Jobs Act (TCJA), which he signed into law in 2017. In a social media post, he pledged to implement what he called “the largest tax cuts in the history of our country” if reelected. Trump’s comments also came ahead of a speaking engagement in Arizona, where he reiterated his commitment to his “Make America Great Again” agenda.
Many provisions of the TCJA are set to expire by the end of 2025, potentially leading to over $4 trillion in tax increases by January 2026. This looming expiration could pose significant challenges for the next Congress and administration. Business tax benefits, including those for pass-through entities, are also set to phase out between 2025 and 2028. This situation has sparked debates about the future of tax policy and the potential economic impact of the expiring cuts.
Grover Norquist, president of Americans for Tax Reform, highlighted the uncertainty created by the possible expiration of these tax cuts. He warned that political shifts, such as Democrats gaining control of Congress, could lead to substantial tax increases. Norquist expressed concerns about market instability and the implications of delayed or blocked tax policy extensions.
Earlier in the year, Trump hinted at the idea of abolishing federal income taxes, citing historical reliance on trade tariffs in the late 19th century as an alternative model. He argued that during that period, the U.S. was wealthier and did not face the financial struggles many Americans experience today. Trump criticized the current tax system for placing undue burden on citizens, suggesting a return to a system that prioritizes economic prosperity.
Trump’s remarks underscore his focus on tax reform as a central component of his campaign. While his proposal to eliminate federal income taxes has drawn attention, it also raises questions about feasibility and its potential effects on government revenue. The expiration of the TCJA provisions remains a pressing issue that will likely dominate economic policy discussions in the coming years.
