{"id":8192,"date":"2024-11-19T21:12:51","date_gmt":"2024-11-19T21:12:51","guid":{"rendered":"https:\/\/finderica.com\/why-trumps-tax-plans-could-be-complicated-in-2025-policy-experts-say\/"},"modified":"2024-11-19T21:12:51","modified_gmt":"2024-11-19T21:12:51","slug":"why-trumps-tax-plans-could-be-complicated-in-2025-policy-experts-say","status":"publish","type":"post","link":"https:\/\/finderica.com\/?p=8192","title":{"rendered":"Why Trump’s tax plans could be ‘complicated’ in 2025, policy experts say"},"content":{"rendered":"
<\/span><\/p>\n
\n
\n
\n

U.S. President-elect Donald Trump speaks during a meeting with House Republicans at the Hyatt Regency hotel in Washington, D.C., on Nov. 13, 2024.<\/p>\n

Allison Robbert | Via Reuters<\/p>\n<\/div>\n<\/div>\n<\/div>\n

\n

Congressional lawmakers will soon debate expiring tax breaks and new promises from President-elect Donald Trump.<\/p>\n

Agreeing on cuts and spending, however, could be a challenge.<\/p>\n

With a majority in the House of Representatives and Senate, Republican lawmakers can pass sweeping tax legislation through “reconciliation<\/a>,” which bypasses the Senate filibuster. Republicans could begin the budget reconciliation process during Trump’s first 100 days in office.<\/p>\n

But choosing priorities could be difficult, particularly amid the federal budget deficit, policy experts said Tuesday at a Brookings Institution event in Washington.<\/p>\n

Legislators will be “representing their districts, not their party,” Howard Gleckman, a senior fellow at the Urban-Brookings Tax Policy Center, said Tuesday in a panel discussion at the Brookings event.<\/p>\n

“This is a lot more complicated than just the reds against the blues,” he said.<\/p>\n

More from Personal Finance:<\/strong>
89% of Americans say they do not consider themselves wealthy
As market experts talk of ‘animal spirits,’ what it means for your investments
How to leverage the 0% capital gains bracket as the price of bitcoin surges<\/p>\n<\/div>\n

<\/a>‘Political divisions’ could be a barrier<\/h2>\n
\n

With a slim majority in Congress, Republican lawmakers will soon negotiate with several blocks within their party. Some of these groups have competing priorities.<\/p>\n

Enacted by Trump in 2017, the Tax Cuts and Jobs Act, or TCJA, is a key priority for the next administration.<\/p>\n

Without action from Congress, trillions of tax breaks from the TCJA will expire after 2025. These include lower tax brackets, higher standard deductions, a more generous child tax credit, bigger estate and gift tax exemption, and a 20% tax break for pass-through businesses, among other provisions.<\/p>\n<\/div>\n

\n
\n
\n

The more things you try to bring in, the more potential political divisions we have to navigate.<\/p>\n

\n

Molly Reynolds<\/p>\n

senior fellow in Governance Studies at Brookings Institution<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/blockquote>\n

<\/a>Tax bill could take longer than expected<\/h2>\n
\n

Since budget reconciliation involves multiple steps, policy experts say the Republican tax bill could take months.<\/p>\n

Plus, Congress has until Dec. 20 to fund the government and avoid a shutdown. A stopgap bill<\/a> could push the deadline to January or March, which could take time from Trump’s tax priorities.<\/p>\n

“The idea that they’re going to do this in 100 days, I think, is foolish,” Gleckman said. “My over-under is Dec. 31, 2025, and that might be optimistic.”<\/p>\n

However, the bill could get through by Oct. 1, 2025, which closes the federal government’s fiscal year, other policy experts say.<\/p>\n<\/div>\n

\n
\n
\n
\n

Don\u2019t miss these insights from CNBC PRO<\/h2>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n
\n
\n
\n
\n
<\/span><\/span><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

U.S. President-elect Donald Trump speaks during a meeting with House Republicans at the Hyatt Regency hotel in Washington, D.C., on Nov. 13, 2024. Allison Robbert | Via Reuters Congressional lawmakers will soon debate expiring tax breaks and new promises from President-elect Donald Trump. Agreeing on cuts and spending, however, could be a challenge. With a<\/p>\n","protected":false},"author":1,"featured_media":8193,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rank_math_lock_modified_date":false,"footnotes":""},"categories":[196],"tags":[476,442,375,773,97,962],"class_list":{"0":"post-8192","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-finance-news","8":"tag-complicated","9":"tag-experts","10":"tag-plans","11":"tag-policy","12":"tag-tax","13":"tag-trumps"},"_links":{"self":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts\/8192","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=8192"}],"version-history":[{"count":0,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts\/8192\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/media\/8193"}],"wp:attachment":[{"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=8192"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=8192"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=8192"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}