Trump’s 2025 tax plan: What to expect? Check out all the details about it!

After the triumph of Donald Trump in the 2024 presidential election against the Democratic candidate Kamala Harris, people are wondering what kind of tax policies the Trump administration will bring.

With the Tax Cuts and Jobs Act expiring at the end of 2025, people are speculating about Trump’s stance on it. New ideas proposed by the president-elect in recent interviews and campaign promises have led to much speculation, let’s see what to expect from Trump’s 2025 tax plan.

Trump’s 2025 tax plan

Congress and lawmakers will soon begin debating the 2025 tax plans and making a 2025 deal with President-elect Donald Trump. With many tax provisions ending by the end of 2025, speculation about tax plans is evident.

Trump has promised to extend the TCJA 2017 Act when he takes office among other promises. In recent interviews, the president also revealed bits of his tax plan, such as raising tariffs on imported goods. President Trump will be sworn into office in January 2025.

Trump also plans additional tax cuts to make things easier for taxpayers, but experts are concerned about the impact of the tax cuts. The upcoming tax plan will have everything for Social Security recipients, workers, taxpayers, businesses, Americans living abroad and others.

What can you expect from Trump’s 2025 tax plan?

During the presidential campaign, Republicans proposed several tax provisions that could give us an idea of ​​the upcoming Trump tax plan. Let’s take a look at what tax provisions the current president-elect and his party have proposed and Trump has discussed:

• First, Republicans promised to expand the TCJA Act of 2017, which would affect taxpayers and Americans in many ways through the standard deduction, the child tax credit, tax rates and many others.
• They promised to bring back TCJA 2017 business tax policies, such as R&D expenses, bonus depreciation, EBITDA, etc.
• They promised to exempt Social Security benefits and payments from federal income tax.
• They plan to extend the estate tax and personal income tax cuts in the 2017 TCJA.
• Increase the child tax credit to $5,000 for Americans who qualify for the credit.
• The Trump administration plans to cut the state and local tax (SALT) deduction, which details sales tax, property tax and their deduction.
• Republicans plan to cut Section 301 tariffs to 60%, with 20% being a universal tariff on US imports.
• They plan to change the DPAD (Deduction for domestic production activities) from 28.5% to 15% for domestic production.
• They plan to abolish subsidies for green energy in the Tax Administration (Inflation Reduction Act).

Republicans have promised many changes to the tax code and provisions in the coming years, and we can expect the above tax changes in 2025. or the following years.

What do experts say about the impact of Trump’s tax plans?

According to the proposed Trump tax plan, or expected based on the promises of the Republicans during the presidential campaign, it will affect the economy, incomes and citizens, let’s see how:

• The expansion of the TCJA law will affect taxpayers the most as the standard deduction under the TCJA doubles, helping Americans save on their taxes. The current deduction for taxpayers is $15,000 for individuals and $30,000 for couples filing jointly.
• The child tax credit will remain at $2,000 even if the government does not increase the CTC in 2025, otherwise it will revert to the $1,000 credit.
• The SALT deduction limit is $10,000 under the TCJA which many people have criticized as a $10,000 limit because previously there was no SALT deduction limit. Although Republicans have promised to cut the SALT deduction, experts believe the administration will increase the cap because of the economic situation.
• Tax cuts will greatly affect the taxpayers and the nation’s economy because tax cuts will reduce the burden on taxpayers, however, tax cuts would increase the pressure on the US treasury.
• Exemptions from Social Security and other benefits in the upcoming plan will reduce the burden on Americans.
• Additionally, Trump has also proposed ending the IRA’s green energy tax credits. Eliminating the IRA tax breaks has no long-term economic effect because they are only temporary extensions.

How to prepare for the end of TCJA 2017?

If the TCJA Act of 2017 is extended and expires, it would affect those who earn more income the most because it helps them save taxes, for example, the gift tax exemption under the TCJA Act offers a double exemption to taxpayers.

So, if you want to mitigate the impact of the TCJA’s expiration, you should plan ahead and budget for extra cash to pay higher taxes in 2026. Small business owners, freelancers, and others can plan ahead and prepare for taxes and other deductions that were applicable before the Act. TCJA from 2017

You should monitor your income and income that could be affected by the expiry of the tCJA Act 2017 and make a financial plan. Although most individuals will not be affected after the TCJA expires, you should still be well prepared.

The Trump administration is expected to release its tax plan within the first 100 days of Trump assuming the office of president, so in a month or two we can expect a detailed tax plan from the Trump administration.