Biden’s Stance on Tax Cuts
In a recent statement, President Joe Biden has indicated a shift in fiscal policy that may have significant implications for middle-class and working-class families across the United States. The President voiced his intention to let the Tax Cuts and Jobs Act (TCJA) of 2017, also known as the “Trump tax cuts,” expire at the end of 2025 without seeking renewal.
These tax cuts, which were a hallmark of former President Donald Trump’s administration, have been a topic of debate since their inception. While Biden and his allies argue that the benefits were skewed towards the wealthiest and large corporations, this perspective is not universally accepted. Tax policy experts have noted that the TCJA provided tax relief across all income groups, with particular provisions that aided middle-class families.
According to the Tax Foundation, a nonpartisan think tank, the expiration of the TCJA would lead to an increase in taxes for Americans starting in 2026. Noah Peterson, an editor at the foundation, highlighted that the TCJA not only introduced business tax cuts and changes to the international tax system but also reformed individual income taxes. This included reducing income tax rates, expanding brackets, and doubling the standard deduction—changes that have been beneficial for individual taxpayers.
Peterson emphasized the potential negative impact on economic growth if these tax cuts are not extended. He suggested that making the TCJA permanent could lead to increased economic activity, employment, and incomes. Conversely, allowing the tax cuts to expire could mean less disposable income for individuals and a weaker economy overall.
On the other side of the political spectrum, CatholicVote Director of Government Affairs Tom McClusky criticized Biden’s announcement as an attack on families, arguing that it targets middle-class individuals and those with large families by increasing their tax burden.
The Trump administration had previously cited statistics indicating how the TCJA was aiding middle-class families, such as doubling the Child Tax Credit and nearly doubling the standard deduction. These measures were designed to alleviate financial pressures on American families and promote educational choice through provisions like expanded use of 529 Savings Accounts for elementary and secondary education expenses.
As the expiration date for the TCJA approaches, the debate over its impact and the future of tax policy in the United States continues to unfold. Stakeholders from various sectors are weighing in, highlighting the complex interplay between tax policy and economic growth.
