Expiring Income Tax Rates

Current personal federal income tax rates are set to expire at the end of this year. 

The Tax Cuts and Jobs Act (TCJA) of 2017 lowered the highest marginal bracket from 39.6% to 37%.

If it does expire, the brackets will revert to those of 2017 with the highest being 39.6%. 

The standard deduction will be lowered from the current $14,600 for single filers and $29,200 for married filing joint to a projected $8,300 and $16,600. 

It is estimated by the Tax Foundation that 62% of filers would see a tax increase if TCJA expires. 

According to former Speaker of the House Newt Gingrich, Congress needs to pass a tax bill by May in order for the cuts to put money in people’s pocket before the end of the year. 

If a bill is not passed, the Republicans almost certainly will lose the House in 2026. 

Will Republicans shoot themselves in the foot again?

Based on what I see right now I am not optimistic of a tax bill passing at all this year but with politics, you never know.