Article Summary –
Donald Trump and his Republican allies are proposing to extend the individual, business, and estate tax provisions of their 2017 tax law. According to the nonpartisan Congressional Budget Office, this would add $4.6 trillion to the national debt over the first 10 years. However, Joe Biden and his Democrat allies propose letting the law expire for the richest Americans and extending the tax cuts for those earning less than $400,000 a year.
Trump Proposes Making 2017 Tax Law Permanent
Ex-President Donald Trump and Republican allies aim to permanently extend parts of the 2017 tax law, which largely benefitted the wealthiest. The Congressional Budget Office’s analysis indicates extensions of the individual, business, and estate tax provisions could add $4.6 trillion to the national debt over a decade.
Effects of the 2017 Tax Cuts and Jobs Act
The 2017 Tax Cuts and Jobs Act, passed by a Republican-majority Congress and signed by Trump, significantly reduced taxes for the wealthiest and large corporations. Despite minimal benefits for others and instances of tax increases, Republicans are determined to prevent its expiration in 2025.
Republicans’ Commitment to Tax Cuts
102 Republicans in the U.S. House of Representatives propose the TCJA Permanency Act that would extend the law’s individual provisions indefinitely. The co-sponsors include Michigan Republican Rep. John Moolenaar, who, along with Reps. Jack Bergman, Bill Huizenga, and Tim Walberg, supported a similar proposal in 2018.
Senate Candidates Endorse 2017 Tax Law
Republican U.S. Senate candidate Mike Rogers backs Trump’s tax cuts as a key GOP policy. His primary opponents, Sandy Pensler and ex-Rep. Justin Amash, also support the 2017 law.
Projected Debt Increase from Extended Tax Law
The Congressional Budget Office estimated that making the 2017 law permanent would add $3.5 trillion to the national debt through 2033. Assuming the current national debt of $34.7 trillion, the extension could increase this by over 10%.
Biden’s Contrasting Proposal
President Joe Biden and his Democratic allies suggest letting the 2017 law expire for the wealthiest, extending tax cuts for those earning less than $400,000 annually.
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