Chicago – January 29, 2025
The Republican-led Congress is considering whether to extend and expand various income tax cuts enacted in 2017 during Trump’s first term in office. Some are due to expire this year. The Congressional Budget Office estimates keeping the expiring provisions in place would add about $4 trillion to deficits over a decade.
Trump also supports some new cuts, including lowering the corporate income tax rate to 15%. The rate already was reduced from 35% to 21% during his first term.
While campaigning last year, Trump proposed to exempt overtime pay, workers’ tips and Social Security benefits from federal income taxes. If adopted, those could trigger additional state tax cuts.
