Biden’s TCJA Dilemma: Sticking to Trump Tax Cuts Amid Economic Struggles

Lawrence Jones recently spoke with Wisconsin small business owner Shana Gray about how she has been affected by the policies of President Biden, who positioned himself as an anti-Trump figure. While Biden actively worked to dismantle former president Donald Trump’s policies on various issues such as worker’s rights and energy, he left one significant piece untouched: the Tax Cuts and Jobs Act (TCJA), also known as the Trump tax cuts. Now in an election year, Biden has claimed that if re-elected these will stay “expired”, despite previous silence on their status during his time in office thus far.
This stance could still prove to be risky given its impact on most American households who have been struggling economically under the current administration’s brutal inflation regime causing them high debt, declining household saving rates and higher mortgage payments owing largely due to skyrocketing interest rate hikes as a result of aggressive Fed monetary policies.
In contrast, Americans remember what their costs were like before the pandemic thanks in part to Trump era tax cuts, including for individuals not only richer ones whom Biden promises to exclusively raise taxes on after his second term begins. The TCJA’s key provisions are set to expire at year-end 2025 leaving a dilemma of whether whoever wins the election will admit it was beneficial and extend them, let them lapse or replace it with some new scheme as current circumstances deteriorate owing partly to rising mortgage costs which makes buying houses impossible for many including first time buyers.
Meanwhile, small business owner Gray describes Biden’s policy measures from price increases affecting inventory, food costs spiking in a crucial midwest farmland location such that people need an additional income or multiple jobs simply survive amid the high cost of living under this administration; hence why Americans can still find some comfort as the ghostly impact continues with the Trump era tax cuts left alone.