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Congress organizes and plans the expiration of the Trump tax cuts of 2017

One of the biggest issues Congress will face next year, regardless of who wins the election in November, is the expiration of the 2017 Trump tax cuts. In fact, both sides consider it so important that they are already discussing possible strategies.

In the Senate, the Finance Committee is considering tax policy, and the Democratic majority is reportedly set to meet next week to begin developing possible strategies for the legislation.

In the House of Representatives, the Budget Committee is in charge, and the Republican majority is already actively working on plans to preserve the benefits of Trump’s tax cut law, officially known as the Tax Cuts and Jobs Act (TCJA).

“We are,” said Congressman Kevin Hern of Oklahoma, a member of the committee. “Chairman Jason Smith has looked at all the components of the tax bill.”

In April, Republican Rep. Smith of Missouri announced the formation of 10 “tax teams” made up of Republican committee members to “examine the key tax provisions of the 2017 Trump tax cuts that expire in 2025 and find legislative solutions that continue to help families, workers and small businesses,” Smith said in a press release.

Areas of focus for the team that Hern chairs include American manufacturing, working families, supply chains and global competitiveness.

“When the Tax Cuts and Jobs Act of 2017 was enacted,” Hern (R-OK1) said in an interview Wednesday, “other countries responded with tax cuts and changes to their tax laws. So we need to see how that all fits together to create a tax law that has to last through 2026 and beyond.”

Provisions of the law, which expire at the end of 2025, include lower marginal tax rates, an increased flat-rate and child allowance, and a higher inheritance and gift tax exemption.

“And so now there will be a total of $4.2 trillion in tax increases for individuals starting in January 2026,” Hern explained, “because all of these codes are expiring.”

As much as the Biden administration criticizes former President Trump’s groundbreaking legislative achievements, it disputes Republican claims that the American middle class will face higher taxes if Biden is re-elected.

“The president has made it very clear that no family making less than $400,000 will face a tax increase,” Treasury Secretary Janey Yellen told Rep. Smith at a recent committee hearing. “He has not proposed anything like this since he took office, and he is not proposing to allow it when parts of the TCJA expire.”

Hern says that given that extending tax cuts could potentially increase the national debt, he’s not sure he would support leaving things as they are – especially when inflation hasn’t improved and interest rates are high.

“All of that makes it a little more precarious,” said Hern, “and how we expand those, what we change, what we eliminate, we have to look at all of that and everything is

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