Article Summary –
Former US President Donald Trump and Republican allies aim to make expiring sections of the 2017 tax law permanent, despite nonpartisan Congressional Budget Office estimates suggesting this could add $4.6 trillion to the national debt over a decade. The tax law drastically reduced tax for higher earners and big corporations while having minimal impact or causing tax increases for others. If the law is extended, it could increase the national debt, currently at about $34.7 trillion, by over 10%.
Trump and GOP Aim to Permanently Extend Parts of 2017 Tax Law
Ex-President Donald Trump and Republican allies aim to make components of their 2017 tax law, favoring the wealthiest Americans, permanent. The Congressional Budget Office’s analysis predicts that extending the individual, business, and estate tax provisions could add $4.6 trillion to the national debt within a decade.
Impacts of the 2017 Tax Cuts and Jobs Act
The 2017 Tax Cuts and Jobs Act, passed under Trump’s administration, massively reduced taxes for top earners and large corporations, providing minor benefit or tax increases for others. These cuts are slated to expire in 2025.
Republicans’ Promise to Prevent Tax Cut Expiration
Republicans are resolved to extend these tax benefits. Trump stated in December 2023, “I will never let the Trump Tax Cuts be taken away from you,” as per an NH Journal report. The TCJA Permanency Act, proposed by 102 House Republicans, would make the law’s individual provisions enduring.
Support and Opposition for the Proposal
Michigan Republican Rep. John Moolenaar is among the co-sponsors of the Act. The potential GOP nominee for Michigan’s open seat, Mike Rogers, declares Trump’s tax cuts as an essential GOP policy. His primary opponents, Sandy Pensler and Justin Amash, also support the law.
Projected Impact on National Debt
As per the Congressional Budget Office estimate, the permanency of the 2017 law could add $3.5 trillion to the national debt by 2033. The current national debt of $34.7 trillion could inflate by over 10% with this extension.
Democrats’ Counterproposal
President Joe Biden and Democratic allies propose the expiration of the 2017 law for the richest Americans, while extending tax cuts for those earning under $400,000 annually.
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