At the end of 2025, the individual portions of the Tax Cuts and Jobs Act expire all at once. Without congressional action, 62 percent of filers could soon face a tax increase relative to current policy in 2026. At the same time, the price tag for extending the 2017 Trump tax cuts is in the trillions.
The Trump tax cuts, known as the Tax Cuts and Jobs Act (TCJA) signed in late 2017, took effect starting January 1, 2018, with most individual cuts set to expire in 2025 but then extended and modified by the "One Big Beautiful Bill" (OBBBA) signed in July 2025, making many changes permanent or extending them further, impacting taxes for 2025 and beyond.
Yes, many individual provisions of the Trump-era Tax Cuts and Jobs Act (TCJA) from 2017 are set to expire at the end of 2025, reverting tax law to pre-2017 levels unless Congress acts, with key changes including the standard deduction, SALT deduction cap, and estate tax rules set to change, although legislation like the "One Big Beautiful Bill Act" (OBBBA) has since extended some of these cuts into the future, changing the original expiration cliff.
The average taxpayer would see a 22 percent tax hike if the Trump tax cuts expire. A family of four making $80,610, the median income in the United States, would see a $1,695 tax increase if the Trump tax cuts expire. This is worth about 9 weeks of groceries to a typical family of four across the country.
The Tax Cuts and Jobs Act of 2017 was legislation passed by the 115th Congress and signed into law by President Donald Trump.
Passed in 2017, the Tax Cuts and Jobs Act (TCJA) made several significant changes to the tax code that affected the tax planning strategies for millions of Americans. But many of these changes weren't permanent and the legislation was set to expire at the end of 2025.
The bottom 99% also saw an average federal tax rate increase by one percentage point from 2012 to 2013, mainly due to the expiration of the Obama payroll tax cuts, which were in place in 2011 and 2012. However, for income groups in the bottom 99%, the average federal tax rate remained at or below the 2007 level.
The Congressional Budget Office (CBO) estimated in 2018 that the 2017 law would cost $1.9 trillion over ten years, and recent estimates show that making the law's temporary individual income and estate tax cuts permanent would cost roughly another $4.2 trillion through 2035.
Up to $12,500 of qualified overtime pay is now eligible for a tax deduction. As with the provision on tips, this deduction is due to expire in 2028 and starts to phase out at a rate of $100 per $1,000 of income over a MAGI of $150,000 for a single filer, and $300,000 for joint filers.
FACT: The bill cuts taxes and lowers rates for all Americans. While the status quo tilts in favor of the wealthy, the Tax Cuts and Jobs Act delivers tax relief for middle-income Americans by doubling the standard deduction and lowering rates for those who need it most.
No Tax on Overtime is a provision that was included in a larger tax reform bill that passed in July 2025. It allows certain workers to deduct up to $12,500 in qualified overtime compensation from their taxable income on their federal income tax return. Joint filers can deduct up to $25,000.
The IRS in October released new federal income tax brackets for 2026. The inflation-based change increased the income ranges for the two lowest tax brackets by about 4%, and the higher ones by roughly 2.3% compared to 2025.
Yes, many individual provisions of the Trump-era Tax Cuts and Jobs Act (TCJA) from 2017 are set to expire at the end of 2025, reverting tax law to pre-2017 levels unless Congress acts, with key changes including the standard deduction, SALT deduction cap, and estate tax rules set to change, although legislation like the "One Big Beautiful Bill Act" (OBBBA) has since extended some of these cuts into the future, changing the original expiration cliff.
In 2012, during the fiscal cliff, Obama overcame the sunset provisions and made the tax cuts permanent for single people earning less than $400,000 per year and couples making less than $450,000 per year, but did not stop the sunset provisions from applying to higher incomes, under the American Taxpayer Relief Act of ...
“President Trump's 2017 Tax Cuts and Jobs Act not only strengthened American manufacturing, but promoted job growth, drove innovation, increased hardworking Americans' take home pay, and increased U.S. competitiveness.
If the individual tax cuts expire, taxpayers in all income groups would face higher and more complicated taxes. Machinery and equipment expensing is a key provision that, if allowed to expire, would especially harm capital-intensive industries like manufacturing.
The deadline to file federal income tax returns this year — to report income earned in 2025 — is April 15, 2026. If you file an extension, you have until Oct. 15 to file your federal tax return.
Lawmakers have passed legislation called the “One Big Beautiful Bill Act” to make the expiring tax cuts permanent, provide additional tax cuts and changes to the tax code, and reduce spending. President Trump signed the bill into law on July 4, 2025.
1837: Andrew Jackson
This resulted in a huge government surplus of funds. (In 1835, the $17.9 million budget surplus was greater than the total government expenses for that year.) By January of 1835, for the first and only time, all of the government's interest-bearing debt was paid off.
"Read my lips: no new taxes" is a phrase spoken by American presidential candidate George H. W. Bush at the 1988 Republican National Convention in New Orleans as he accepted the nomination on August 18.
To raise additional revenue for reform, the ACA imposed excise taxes on health insurers, pharmaceutical companies, and manufacturers of medical devices; raised taxes on high-income families; and increased limits on the income tax deduction for medical expenses.
The phrase Reagan tax cuts refers to changes to the United States federal tax code passed during the presidency of Ronald Reagan. There were two major tax cuts: The Economic Recovery Tax Act of 1981 and the Tax Reform Act of 1986.