Between the attempted assassination of one party's nominee and the other party's possible replacement of its candidate, the 2024 election has become one of the most unusual in modern times. Sadly, it is also completely devoid of meaningful discussions on critical issues such as taxes, energy or trade.
This situation has frustrated the businesses, small and large alike, that are trying to survive in an already uncertain economy. A 2025 “Tax Armageddon” looms as provisions of the Tax Cuts and Jobs Act of 2017 are set to expire. It will be the first item on the agenda for the next administration and will command the attention of everyone in the country next year. Both potential administrations see it as an opportunity to pursue their own specific goals on taxes.
As signaled by his recent budget proposal, President Biden and congressional Democrats want to seize this opportunity to raise taxes, in the name of controlling the rising U.S. debt and driving certain social policy goals. On the other hand, a second term Trump presidency could mean continuation of the same tax provisions, or a even a further lowering of corporate tax rates.
Whatever plan is being drawn up by the parties, the elephant in the room will be the rising U.S. deficit and ballooning........