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Whose Tax Plan Are We Under In 2024 – Quick Overview

Whose Tax Plan Are We Under In 2024 – Quick Overview

Whose Tax Plan Are We Under in 2024 – Quick Overview

In 2024, the U.S. tax system continues under the framework of the 2017 Tax Cuts and Jobs Act (TCJA), with some provisions set to expire in 2025, prompting discussions on potential reforms.

Current Tax Framework: The 2017 Tax Cuts and Jobs Act

The TCJA, enacted in 2017, introduced significant changes to the U.S. tax code, including:

  • Reduction of the corporate tax rate from 35% to 21%.

  • Doubling the standard deduction for individual filers.

  • Elimination of personal exemptions.

  • Limitation of the state and local tax (SALT) deduction to $10,000.

  • Increase in the child tax credit.POLITICO

These provisions are still in effect in 2024, but many are scheduled to expire at the end of 2025, leading to ongoing debates about their extension or modification.

Proposed Changes and Political Landscape

Republican Perspective

The Republican Party advocates for the extension of the TCJA provisions beyond 2025. They argue that maintaining these tax cuts is essential for economic growth and competitiveness. Some proposals include:Yahoo Finance+8taxplaniq.com+8Weil Tax BLOG+8

  • Making individual tax cuts permanent.

  • Further reducing the corporate tax rate.

  • Eliminating the estate tax.Weil Tax BLOG

Democratic Perspective

The Democratic Party, on the other hand, supports modifying the TCJA to address income inequality and increase federal revenues. Their proposals often include:bakertilly.comtherealestatecpa.com+6Weil Tax BLOG+6taxplaniq.com+6

  • Raising the corporate tax rate to 28%.

  • Increasing the top individual income tax rate.

  • Enhancing tax credits for low- and middle-income families.fostergraham.com

Implications for Taxpayers

As of 2024, taxpayers operate under the existing TCJA provisions. However, the impending expiration of many of these provisions in 2025 creates uncertainty. Taxpayers should stay informed about legislative developments that may affect their tax liabilities in the near future.

Conclusion

In summary, the U.S. tax system in 2024 remains governed by the 2017 Tax Cuts and Jobs Act, with potential changes on the horizon as political debates continue over the future of these provisions.