Discussions surrounding potential fiscal policies under a future Trump administration often center on revisions to the 2017 Tax Cuts and Jobs Act (TCJA). A key element of these discussions involves the expiration of several individual income tax provisions within the TCJA, set to occur at the end of 2025. The future direction of tax policy, therefore, necessitates consideration of these expiring provisions and potential alternative approaches to taxation.
The importance of understanding these potential tax changes lies in their widespread economic impact. Tax policy influences investment decisions, consumer spending, and overall economic growth. The benefits of a well-structured tax system include promoting economic efficiency, encouraging savings and investment, and providing a stable source of revenue for government services. Historically, tax policy changes have often been used to stimulate economic activity or address perceived inequalities in the tax system.
