Fact Check: "Tax cuts from the 2017 Trump tax package are set to expire."
What We Know
The Tax Cuts and Jobs Act (TCJA), enacted in December 2017, introduced significant changes to the U.S. tax code, many of which were designed to be temporary. According to the Brookings Institution, most individual tax provisions of the TCJA are scheduled to expire at the end of 2025. This includes reductions in individual income tax rates, the increased standard deduction, and the enhanced Child Tax Credit, among others. If these provisions expire as planned, taxpayers will revert to pre-2017 tax rates and deductions starting January 1, 2026.
Additionally, the Congressional Research Service confirms that many provisions affecting individuals and families are set to expire at the end of 2025, further supporting the claim that tax cuts from the TCJA are temporary and will end unless renewed by Congress.
Analysis
The claim that tax cuts from the 2017 Trump tax package are set to expire is substantiated by multiple credible sources. The Brookings Institution provides a detailed breakdown of the expiring provisions, highlighting that the expiration of these tax cuts will significantly impact taxpayers across various income levels. For instance, the top marginal tax rate is set to revert from 37% back to 39.6%, and the Child Tax Credit will decrease from $2,000 back to $1,000 per child.
The Tax Foundation also notes that unless Congress intervenes, the expiration of the TCJA will lead to widespread tax increases starting January 1, 2026. This aligns with the findings from the Congressional Budget Office, which estimates that the expiration of individual tax provisions could raise government revenues by approximately $4.6 trillion over the following decade.
While the TCJA's corporate tax cuts are permanent, the individual tax cuts are not, which is a critical distinction. The reliability of these sources is high, as both the Brookings Institution and the Congressional Research Service are respected organizations known for their research and analysis in fiscal policy.
Conclusion
Verdict: True
The claim that tax cuts from the 2017 Trump tax package are set to expire is accurate. The provisions affecting individual taxpayers are scheduled to end on December 31, 2025, unless Congress takes action to extend them. This conclusion is supported by credible sources that outline the specific provisions set to expire and their implications for taxpayers.
