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2024 election insights: Tax Cuts and Jobs Act and its impact
Sept. 4, 2024
Election campaigns often feature calls for changes to tax policy, but this year they are a key focus at both the congressional and presidential levels as candidates, lawmakers and their constituents are grappling with the potential impact of the pending Tax Cuts and Jobs Act (TCJA) of 2017 expirations.
Absent congressional action, numerous TCJA tax provisions will expire at the end of 2025. The ramifications of a failure to address this fiscal cliff would be significant and widespread, with implications for almost all business and individual taxpayers. “This is going to be tax Armageddon” said Sen. Mark Warner (D-VA).
Below is a history of the TCJA, details on the most relevant and prevalent TCJA expiring provisions and a review on why the cost of extension may be a barrier.
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The TCJA: History
The TCJA was landmark Republican legislation that implemented expansive tax reform. The bill, which took effect in 2018, featured a reduction in the corporate tax rate, a reduction in income of up to 20% for qualifying pass-through entities, reductions in individual tax brackets, a doubling of the estate tax exemption, sweeping changes to the global tax regime, and various other changes affecting both business and individual taxpayers.
