President Biden signaled he would let tax cuts from the 2017 Tax Cuts and Jobs Act expire if re-elected, which would increase taxes on most Americans as inflation rises.
The TCJA reduced tax rates and widened brackets across all income levels.
“Donald Trump was very proud of his $2 trillion tax cut that overwhelmingly benefited the wealthy and biggest corporations and exploded the federal debt,” Biden wrote on X. “That tax cut is going to expire. If I’m re-elected, it’s going to stay expired.”
Letting it expire goes against Biden’s pledge not to raise taxes on those earning under $400,000 annually.
The nonpartisan Tax Foundation says Congress has less than two years to prevent tax hikes on the “vast majority” from the law’s provisions ending, like doubled standard deductions and child tax credits.
“The TCJA reduced average tax rates for taxpayers at all income levels because it lowered marginal tax rates, widened tax brackets, doubled the child tax credit and zeroed out personal and dependent exemptions, nearly doubled the standard deduction, and limited several itemized deductions and the alternative minimum tax, among other changes,” the report noted. “Average rates declined across all income groups and have remained below their 2017 levels since.”
A senior fellow criticized Biden for both endorsing a $2 trillion tax hike on most earners by letting it expire, while also claiming deficit savings from full expiration but pledging to extend cuts for those under $98th percentile, which would cost $2 trillion.
“Biden just endorsed a $2 trillion tax hike on earners under $400k (breaking his no-new-taxes pledge for such earners), and and endorsed cutting the child credit down to $1,000,” Manhattan Institute Senior Fellow Brian Riedl said. “The White House wants it every way on the TCJA: 1) They demand to end the ‘Trump tax cuts’ – and write a budget claiming all the deficit savings from full expiration, but then also: 2) Pledge to extend for the bottom 98%, which costs $2 trillion over the decade.”
In short, Biden indicated he would undo tax cuts despite high living costs facing many Americans.
