It would be nearly impossible to exaggerate the economic significance of renewing provisions from the 2017 Tax Cuts and Jobs Act (TCJA). The post Breitbart Business Digest: The Clock Is Ticking on the Trump Tax Cuts—And the Economy Knows It appeared first on Breitbart.
The 2017 Tax Cuts and Jobs Act (TCJA) provisions are set to expire, and failing to renew them could have significant economic consequences. Treasury Secretary Scott Bessent is reportedly meeting with congressional Republicans to shape a tax cut package, but delays in securing tax policy have already affected investor confidence, with the stock market dropping 1,300 points last week. Larry Kudlow has highlighted the market's reaction to the lack of priority on tax cuts. The expiration of the TCJA would result in a $4.6 trillion tax increase over the next decade, reducing GDP growth by an estimated 1.5% annually. Key provisions at risk include the standard deduction, child tax credit, and small business deductions. The Tax Foundation estimates that 62% of taxpayers would face tax increases in 2026, including middle-income earners. Consumer hesitation and reduced business investment due to economic uncertainty could further slow growth. Small businesses are also delaying investments, with the NFIB Small Business Optimism Index falling in January. The article emphasizes that the deadline for tax policy clarity is approaching, with potential impacts on consumer spending and business activity as early as this spring.
