Welcome to Extreme Investor Network, where we provide expert insights on personal finance and investing to help you maximize your financial success. Today, we’re diving into the potential impact of the recent presidential election on taxpayers, specifically focusing on former President Donald Trump’s victory over Vice President Kamala Harris.
With Trump’s win, there is much uncertainty surrounding how his policies will affect taxpayers. One key area of focus is the Tax Cuts and Jobs Act (TCJA) enacted by Trump in 2017. This legislation brought about significant changes, such as lower tax brackets, higher standard deductions, and more generous child tax credits. However, these individual tax breaks are set to expire after 2025 unless Congress takes action.
Trump has expressed his desire to fully extend these expiring provisions of the TCJA. This could potentially lead to higher taxes for more than 60% of taxpayers if not extended. However, gaining Congressional approval for Trump’s tax policy may prove challenging, especially with the uncertainty of control in the Senate and House of Representatives.
Furthermore, tax negotiations may face additional hurdles due to concerns about the federal budget deficit. The deficit reached over $1.8 trillion in fiscal 2024, making the “budget math” more challenging this time around. Fully extending TCJA provisions could result in a significant decrease in federal revenue over the next decade, adding to the complexity of the situation.
As we navigate through these uncertain times, it’s important to stay informed and be prepared for potential changes in tax policy. At Extreme Investor Network, we are dedicated to providing you with the latest insights and strategies to help you make informed financial decisions. Stay tuned for more updates on how the presidential election may impact your personal finances.