Tax policy and the 2024 election
Tax policy can have significant economic implications and is often a key driver of decision-making for business and individual taxpayers alike. An understanding of tax policy is critical to navigating uncertainty and planning for changes in the tax landscape. With that in mind, Baker Tilly is pleased to provide details and insights on tax policy and the 2024 election.
Tax policy and the 2024 election
Overview
Election outcomes impact future tax policy decisions and, in 2024, the stakes are exceptionally high.
The United States is facing a pivotal fiscal cliff next year, as numerous Tax Cuts and Jobs Act (TCJA) of 2017 provisions are scheduled to expire. Absent Congressional action, most TCJA provisions affecting individuals, estates and pass-through entities will sunset at the end of 2025, resulting in increased tax burdens for the majority of taxpayers. Additionally, businesses have been grappling with a trio of provisions that have already changed (unfavorably for taxpayers) as scheduled under the TCJA. The recent failure of a bipartisan bill that would have provided relief from those changes only adds pressure to enact comprehensive tax reform before the end of next year.
How the expired and expiring provisions are ultimately addressed will have pervasive and significant impacts on both individual and business taxpayers. The shape and contents of any potential tax reform is dependent upon the outcome of the upcoming elections and the balance of power heading into the 119th Congress. The range of possible solutions also varies widely, with sharp contrasts in general Republican and Democratic approaches, as well as variances in priorities and principles within parties. Adding to the complexity is the exorbitant price tag associated with a blanket extension. Because of the cost, solutions are not limited to the expiring provisions; everything, including permanent tax provisions, will be on the table during negotiations.
The impending TCJA expirations are creating instability in the tax policy landscape and hindering taxpayers' ability to make informed long-term decisions. Understanding the factors affecting decision-makers and tracking developments can help taxpayers overcome some of the uncertainty by assessing and planning for potential tax policy outcomes.
Our pages linked below dive further into the importance of the Tax Cuts and Jobs Act on today’s tax policy debate, discuss the 2024 elections and the implications of possible election outcomes, provide details on the tax policy platforms of both major parties and suggest a few steps taxpayers can take today.
2024 election insights
Toggle between our three insight pages for a deeper analysis provided into the 2024 election and its impact on tax policy.
Tax Cuts and Jobs Act and its impact
When the TCJA was signed into law, it was the most sweeping tax legislation in three decades. Because of the process Congress used to pass the bill, not all TCJA provisions were made permanent; some were only enacted temporarily. How the TCJA’s impending expirations are handled is likely to have ramifications for almost every taxpayer in the United States.
Visit our Tax Cuts and Jobs Act and its impact page to learn more about the TCJA, details about its expiring provisions and the cost of extension.
Election details and possible outcomes
With the White House and both chambers of Congress up for grabs in 2024, there is a wide range of potential election outcomes, the results of which will determine the future of tax policy. Policymakers in the 119th Congress will face difficult negotiations within their own parties and, if the election results in a divided government, between parties.
Visit our election details and possible outcomes page to learn more about the upcoming elections and the ramifications.
Tax policy platforms
Understanding each party’s tax priorities can help taxpayers anticipate the range of possible post-election outcomes. Generally, Republicans and Democrats approaches to tax reform vary widely; however, there are a few areas that garner bipartisan support.
Visit our tax policy platforms page to learn more about Republican and Democrat tax policy priorities.