The potential for reduced levies under a Trump administration centers significantly on extending or making permanent provisions from the 2017 Tax Cuts and Jobs Act (TCJA), which are slated to expire in 2025. These provisions include individual income tax rate reductions, the enhanced standard deduction, and the child tax credit. Maintaining these measures would effectively lower the tax burden for many individuals and families across various income brackets.
Extending these tax policies could stimulate economic growth by increasing disposable income, potentially encouraging consumer spending and investment. Furthermore, businesses could benefit from continued lower corporate tax rates, incentivizing them to invest, expand, and hire more employees. The 2017 TCJA’s impact on economic growth and its distribution of benefits across different income levels have been subjects of considerable debate among economists and policy analysts.
