Finally! Tax Cuts May Be Coming Soon

There are no guarantees on Capitol Hill, but when one party is in control of the legislature, ideas can be executed much faster. And so, at long last, across-the-board tax cuts in the U.S. could take effect fairly soon.

That’s easier said than done, of course, but at least there’s some hope of less taxation in 2025. From 2021 through 2024, there was little to no hope of this happening at all.

Last month, President Donald Trump reaffirmed his commitment to across-the-board tax cuts for all working Americans. In particular, Trump seeks to reduce tax burdens for the “middle-class, upper-class, lower-class, [and] business-class.”

Tax-and-spend advocates, including a minority of representatives in Congress, will oppose this idea. For the next couple of years, however, tax-and-spend agendas are likely to get blocked.

It’s not often that a majority of federal legislative officials consider the idea of using other means, besides taxation, to generate capital. The midterm elections will, to a certain extent, reveal whether the American people agree or disagree with this concept.

At the heart of the current debate is the 2017 Tax Cuts and Jobs Act. Not only does the government have an opportunity to extend the duration of these tax cuts, but they can also expand those tax reductions.

Courtesy: @AA_Millsap

Tax increases to fund spending programs might appeal to a few people, but most Americans don’t support this. According to the Cato Institute, 74% of Americans agree that “tax cuts should be made permanent because taxes are already too high.”

Currently, a number of prominent people in Congress support Trump’s commitment to extend and expand the tax cuts from 2017. For instance, House Speaker Mike Johnson told Fox News, “We’re the Republican Party, and we’re for tax reduction for everyone, and that’s a general principle that we always try to abide by.”

In a similar vein, House Majority Whip Tom Emmer asserted that continuing the 2017 tax cuts would “put American workers, businesses and production first.” Failing to extend these tax cuts, Emmer warned, would result in the “largest tax hike in American history.”

Meanwhile, tax cut proponents in the private sector view Trump’s tax reform as crucial in 2025. National Association of Manufacturers CEO Jay Timmons, for example, noted that key tax reform provisions “have already expired, and others are set to lapse at the end of this year,” so current “economic conditions make renewal of the 2017 tax reforms even more urgent.”

Courtesy: @trump_repost

“Urgent” is the right word to use here, but unfortunately, the wheels of government always turn slowly. Even with one party’s majority in Congress, there’s dissent about the details and key differences still need to be worked out.

This is mission-critical information for all Americans, as the nation’s prosperity could be at stake. To quote Treasury Secretary Scott Bessent, making “President Trump’s Tax Cuts and Jobs Act permanent will help to secure the stable business environment that investors are seeking.”

Hopefully, our elected leaders won’t choose politics over the needs of working-class Americans this year. We’re all facing a rare opportunity here, and if officials in the government can actually work together, the years-long regime of tax-and-spend might finally come to an end.