For five years, most Americans have seen lower income-tax rates and tapped a bigger standard deduction, but without congressional action before the end of 2025, the rules could still revert to levels set long before the pandemic blindsided households and inflation raged. On Thursday, President Joe Biden is unveiling a budget that details his latest attempts to tax the top of the income ladder. That includes a plan to raise the rate on the taxes connected to Medicare among households making over $400,000. Other proposals include a billionaire minimum tax and quadrupling the current 1% stock-buyback tax — two ideas he’s touted.
There’s slim chance Biden’s tax-hike proposals become law anytime soon, considering the Republican majority in the House. It’s about political messages ahead of the 2024 presidential race, according to observers.Tax cuts in Republican tax-code overhaul of 2017 will soon come to an end But the sun will soon set on Trump-era tax rules related to marginal rates, standard deduction amounts, the child tax credit and other provisions. These rules were part of the Trump-era Tax Cuts and Jobs Act of 2017, a law overhauling income-tax rules for individuals, estates, small businesses and corporations. “I view the 2025 expiring tax provisions as this hurricane we already see on the radar, and it’s slowly approaching,” said Jennifer Acuña of KPMG, the tax, advisory and accounting firm. Acuña is a principal at the firm’s federal legislative and regulatory services group in its Washington National Tax practice.
“ ‘I view the 2025 expiring tax provisions as this hurricane we already see on the radar, and it’s slowly approaching.’ ”
— Jennifer Acuña, KPMG
“We’re talking about middle-class taxpayers across the board who are …