Now that the dust has settled on the 2024 presidential election and former president Donald Trump is now once again President-elect, Americans can now begin to predict the kind of economic policies that will take shape over the next four years. One question on the mind of many voters is likely how their taxes will be impacted by this second Trump presidency.
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Looking to Trump’s first administration — as well as what he has said on the campaign trail for his upcoming stay at the White House — can serve as a guide to how the president-elect will tackle taxes:
As reported by CNBC, in 2017, Trump launched the Tax Cuts and Jobs Act (TCJA), which created “lower tax brackets, higher standard deductions, a more generous child tax credit and bigger estate and gift tax exemption,” among other things. Moreover, the TCJA tax breaks are set to end in 2025 unless Congress intervenes. Were those provisions to end, it could raise taxes for more than 60% of all taxpayers. Trump has stated that he prefers to extend all the expiring TCJA tax breaks.
In addition to extending the TCJA tax breaks — assuming Trump gets Congressional approval — Trump campaigned on such wanting to eliminate taxation on tips, as well as ending taxation on Social Security benefits for the elderly and on overtime pay. Trump has also floated the idea of eliminating income taxes entirely and instead adding universal tariffs to all imported goods. However, much like the extension of the TCJA tax breaks, many of these notions would require Congressional support, and while the Republicans have retaken the Senate, as of this writing, the political makeup of the House of Representatives remains unclear as votes are still being tallied. That said, if history is any indication, Trump’s endgame will be to keep taxes lower.
Editor’s note on election coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
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This article originally appeared on GOBankingRates.com: How President-Elect Trump’s Win Could Change Your Taxes
