WASHINGTON – Extending tax cuts that are intended to benefit families and small businesses come with a steep cost – nearly $920 billion through 2029 – according to Congress’s non-partisan scorekeeper.
That figure would add to the total cost of the $1.5 trillion tax overhaul Congress passed in 2017, according to the report issued Monday from the Joint Committee on Taxation. The law included an array of temporary tax cuts, including lower individual rates, more generous child tax credits and a 20% deduction on profits that pass-through businesses earn.
Those tax breaks will all expire at the end of 2025. President Donald Trump’s fiscal year 2020 budget request called to make those tax cuts permanent.
Democrats criticized the 2017 law because it made tax cuts for individuals temporary, while making corporate tax cuts permanent. The corporate tax changes included cutting the rate to 21% and overhauling how overseas profits are taxed.
The temporary tax cuts set up lawmakers for a tough decision at the end of 2025 – extend the expensive tax cuts or raise taxes on families and many small businesses ahead of the 2026 mid-term elections.
Congress is likely many years away from prioritizing an extension of those tax cuts. Last year, the House, while still under Republican control, voted to make the individual tax cuts permanent, largely to generate political support going into the midterm elections. The Senate didn’t advance the bill.
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