WFCN – The 2017 Tax Cuts and Jobs Act (TCJA), which slashed corporate and estate tax rates and enhanced the child tax credit, was the largest piece of tax legislation that Donald Trump signed into law while serving as president.
The deadline for those reductions is the end of 2025. However, you should anticipate that Trump will make even more modifications to the federal tax code if he wins reelection in his 2024 rematch with President Joe Biden and that the cuts will be made permanent.
Trump has suggested abolishing the Department of Education, the Department of the Interior, and a few environmental agencies, among other things. This implies that those organizations and their initiatives would no longer be supported by your taxes.
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If Trump is elected in 2024, your taxes will go to these seven places—and they won’t).
Personal Taxes
One of Trump’s first actions upon winning a second term will probably be to extend the TCJA. Restructuring tax brackets and lowering overall tax rates were two of the law’s main characteristics.
Furthermore, for all filing statuses, the standard deduction was almost doubled, which discouraged taxpayers from itemizing deductions in favor of the standard deduction.
Company Taxes
Trump is also anticipated to keep the 21% corporate income tax rate that is part of the TCJA.
According to Bloomberg, the measure mostly favored corporations and the wealthy by lowering the corporate tax rate from 35% to 21%.
Wealth and Estate Taxes
In the event that President Trump is reelected, you may anticipate continuing to pay estate taxes at the historically low rate he instituted in his first term.
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As of 2019, the most recent year for which statistics are available, just eight out of every 10,000 deceased persons left an estate big enough to be subject to the tax, according to the Institute on Taxation and Economic Policy. Estates valued over $20 million pay the bulk of the estate tax, and in recent years, estates valued over $50 million have paid the majority as well.
Federal Health Programs
Business Insider noted that although Trump has not yet made public his alternative affordable healthcare plan, he has stated that he intends to “repeal and replace” the Affordable Care Act.
In the event of another Trump term, fewer of your tax dollars would probably fund these kinds of initiatives, and millions of ACA participants will have to switch healthcare insurance.
Defense Budget
Even while Trump officially opposes American engagement in international conflicts, if he is re-elected, you may anticipate that a larger portion of your taxes will support defense expenditures.
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Pentagon expenditure increased to $723 billion from $606 billion during Trump’s first term, according to Forbes, which described it as a “substantial after-inflation increase that kept America by far the biggest military spender in the world.” Defense expenditure will “probably increase again” in a second Trump term, exceeding the rate of inflation.
Elevated Learning
Politico said that taxing sizable private university endowments to fund the establishment of a new organization named the “American Academy” will probably be part of a second Trump term.
Plans published with Politico state that the school would “grant credit” to prospective students for previous education and utilize their credentials to apply for positions with the federal government and U.S. government contractors.
Additionally, Trump is likely to renounce the Biden administration’s standout student loan forgiveness initiatives, which means your taxes will no longer be used to fund their expansion.
Immigration
The Trump campaign’s other main platform is to close the border with Mexico and impose strict restrictions on illegal immigration.
Even though the enormous border wall that was started under his administration was not finished, Trump is expected to restart the project and increase federal funding on the fight against illegal immigration should he win reelection.