National Economic Council Director Lael Brainard speaks at the White House in Washington, DC on January 11, 2024.
Drew Angerer | Getty Images
President Joe Biden's top economic adviser unveiled plans Thursday to address trillions of dollars in expiring tax breaks from former President Donald Trump.
After 2025, several provisions of the Tax Cuts and Jobs Act (TCJA) of 2017 will expire without congressional action, which could increase taxes for more than 60% of petitioners, according to the Tax Authorities.
Some phased-out individual provisions include lower federal income tax brackets, a higher standard deduction, a more generous child tax credit, and a doubled estate and gift tax exemption.
“President Biden plans to expand tax cuts for hardworking Americans by ensuring the wealthiest and largest corporations pay their fair share,” Lael Brainard, White House national economic adviser, told reporters at a news conference Wednesday evening.
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Biden will follow “key principles” to support middle-class and working families as the 2025 tax cliff approaches, Brainard said.
The expiration of the TCJA provisions could impact all Americans, but Brainard reaffirmed Biden's pledge to extend tax benefits only to those making less than $400,000. Aiming to raise revenue for his “commitment to seniors and fiscal responsibility,” Biden would allow the TCJA provisions to expire for those making more than $400,000, Brainard said.
By comparison, former President Donald Trump has said he plans to extend all expiring TCJA provisions.
Fully expanding the TCJA provisions could make an estimated contribution $4.6 trillion in deficit over the next decade, according to the Congressional Budget Office.
Trump has not released specific plans on how to fund the expiring TCJA provisions, but has expressed support for tariffs, which are taxes placed on goods imported from another country.
In a statement, Trump's national press secretary Karoline Leavitt said Trump was proud to have passed the TCJA and that if re-elected he would “advocate for more tax cuts for all Americans.”
While the TCJA permanently reduced the top federal corporate tax rate from 35% to 21%, Biden wants to raise corporate taxes and implement a global minimum tax, according to Brainard.
The plan also called for sustainable IRS funding, which Republicans have been targeting since Congress approved nearly $80 billion in funding through the Inflation Reduction Act.
