The potential for changes to the tax landscape in 2025 stems from the expiration of key provisions enacted under the 2017 Tax Cuts and Jobs Act (TCJA). Unless Congress acts, many individual tax cuts implemented by that legislation are scheduled to sunset at the end of 2025. This reversion to prior tax law could result in a higher tax burden for many individuals and families.
The scheduled expiration of the TCJA provisions carries significant implications for the economy and household finances. The impact would be felt across various income levels, affecting tax brackets, standard deductions, and other key elements of the tax code. Understanding these potential shifts is crucial for individuals, businesses, and policymakers alike as they plan for the future and assess the economic outlook.
