The new GOP Congress will have to decide how to tackle the looming expiration of 2017’s TaxA tax is a mandatory payment or charge collected by local, state, and national governments from individuals or businesses to cover the costs of general government services, goods, and activities. Cuts and Jobs Act.
The new Republican trifecta will face some big decisions next year. A large portion of the 2017 Tax Cuts and Jobs Act (TCJA), passed the last time Republicans controlled the White House and both houses of Congress, will expire at the end of 2025 without congressional action.
Extending these provisions would be expensive. We at the Tax Foundation estimated they would cost $4.2 trillion over the next 10 years, falling to “just” $3.5 trillion after taking economic growth into account. On the other hand, 62 percent of filers would see a tax increase if just the individual tax provisions alone are allowed to expire.
Four trillion dollars is a huge number. But what are the details? And what should policymakers prioritize?
This is a preview of our full op-ed originally published in The Dispatch.
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