This story at a glance…

1. Trump wants to extend 2017 tax cuts and add more.

2. Key tax breaks expire in 2025, raising concerns.

3. Extensions could add $5 trillion to the deficit.

4. Without action, taxes will rise for millions in 2026.

The Future of Trump’s Tax Cuts

Taxes can feel like a complicated maze, but understanding them is essential for everyone. Right now, many are watching closely as former President Donald Trump proposes extending key provisions of his 2017 tax overhaul, the Tax Cuts and Jobs Act (TCJA). These changes, designed to reduce tax burdens for individuals and businesses, are set to expire at the end of 2025. If Congress doesn’t act, many Americans could see higher tax bills in 2026.

Trump isn’t stopping at extensions, though. He’s pitching additional cuts, including eliminating taxes on tips and Social Security income. But passing such changes will take significant effort from lawmakers, and the clock is ticking.

As tax expert Duncan Campbell told CBS MoneyWatch, “We might not see anything and wake up in 2026 with everything setting back to pre-TCJA, and some folks who didn’t think about it are like, ‘Oh shoot.’”

What’s at Risk for Taxpayers?
Several key TCJA provisions affect everyday taxpayers. Here’s what could happen if they expire:

• Lower Tax Brackets: Tax brackets would revert to higher, pre-2017 levels. That means most people would pay a higher percentage of their income in taxes.

• Standard Deduction Cuts: Currently, single filers enjoy a $15,000 deduction and married couples can deduct $30,000. Without an extension, those numbers drop to $8,350 and $16,700, respectively.

• Child Tax Credit Reductions: Parents could see the maximum credit per child shrink from $2,000 to $1,000, while income thresholds for eligibility would tighten.

• State and Local Tax (SALT) Deduction: The current $10,000 cap on deductions for property and state taxes could either increase or vanish entirely, depending on new legislation.

These changes would impact families, small business owners, and high-tax state residents the most.

What’s the Plan?
Lawmakers, holding a Congressional majority, are in a strong position to extend the TCJA. But there’s a catch: extending the tax cuts could add over $5 trillion to the national deficit by 2035, according to the Committee for a Responsible Federal Budget.

To balance the books, Trump’s advisors—including Elon Musk and Vivek Ramaswamy—are proposing federal spending cuts through a new advisory group, the Department of Government Efficiency (DOGE). Their plan aims to reduce government costs by $500 billion, but its effectiveness is untested.

What Should You Do Now?
Tax experts recommend taking action now to prepare for potential changes:

1. Plan for Estate Taxes: The current estate tax exemption is $13.6 million per person. If it reverts to $7.5 million, wealthier families could lose significant benefits.

2. Prepare for Higher Business Taxes: The 20% business income deduction for small businesses may disappear. Entrepreneurs should budget for higher tax bills in 2026.

3. Save Strategically: With potential increases across the board, setting aside extra funds could soften the blow.

Reflection
Tax laws, like seasons, shift over time, often in ways we can’t control. It’s wise to plan, but our ultimate trust should rest in God’s unchanging nature, as Malachi 3:6 says, "For I the Lord do not change." While today’s headlines may stir uncertainty, remember that God’s provision is steady. Whether taxes go up or down, He remains our ultimate provider.