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Make no mistake: There were taxes in the agfinisha in the November election, and the tax stakes are higher than usual. In fact, much of former President Donald Trump’s 2017 tax reform is set to expire at the end of 2025.

Most of the provisions affecting Americans and estates in the Tax Cuts and Jobs Act of 2017, such as lower individual income tax rates, higher popular deductions, the higher tax rate for child credits, the $10,000 limit on the state and local tax deduction, and the increased lifetime estate and gift tax exemption automatically end after 2025.

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Unless lawmakers act, those provisions will revert to the rules that were in effect for 2017. With the help of Congress, the next president will have to confront these expiring tax provisions.

Let’s see how Donald Trump wants to deal with this as well as look at other ways he wants to change the current tax system. I’ve pulled together these proposals from speeches he has made on the campaign trail, interviews he has given, his social media posts, the 2024 GOP Platform and other sources.

Above all, Trump wants to make the 2017 tax cuts permanent and pass more with even lower tax rates for individuals; He has not given details, such as whether he would reduce the tax rate. Current income tax source of 37%.

Rumors abound that Trump would push for a top long-term capital gains rate of 15%, down from 20% now, but he hasn’t confirmed this. The Project 2025 initiative, discussed below, proposes a top 15% long-term capital gains tax rate.

Trump backs his vice presidential pick, J. D. Vance, to offer parents an additional child tax credit of $5,000 per child, 250 percent on top of existing tax credits of $2,000 per child.

Hospitality and restaurant workers and other tipped employees would get a boon if Trump has his way. He’s proposing that tipped income be tax-free.

Another organization Trump needs to gain advantages is the paid staff Array. He said at a rally that he was in favor of it being tax-free.

Trump has also proposed abolishing the income tax on Social Security benefits. Under current law, Social Security recipients are taxed on up to 85% of their benefits, depending on the amount of their provisional income. Making Social Security benefits nontaxable would appeal to retirees, but would also put a big dent in the Social Security trust fund, from which benefits are paid.

Living US citizens can benefit from tax adjustments under Trump. The United States taxes its citizens on their international source of income, regardless of where they live. Expats can mitigate some of the threat of double taxation through foreign tax credits and other reliefs, such as the exclusion of sources of income earned abroad and the exclusion of foreign housing.

Trump says he favors ending double taxation on Americans living abroad. We don’t know exactly what that means. An advocacy organization representing American expatriates has for years pushed a regime that would tax expatriates on the U. S. source of income but not on the foreign source of income. They also need the United States to prevent taxing the American source of income of expats living in countries that tax their American source of income.

At a rally in Detroit, Trump proposed allowing Americans to deduct the interest they pay on car loans. The personal interest deduction was abolished in 1986 and now Trump is forced to partially repair it. You did not specify whether this proposed deduction would be given only to people indexed on Schedule A of the 1040, or whether you would make it a tax deduction above the line requested on page 1 of the 1040.

Trump says he would use tax incentives and tax credits to promote homeownership. And in an effort to sway voters in storm-damaged parts of the country, he promises a tax deduction for the cost of generators acquired between September 1, 2024, and August 31, 2025.

Surprisingly, Trump appears to need to increase the $10,000 limit on the state and local tax deduction (SALT) or the total limit. Currently, taxpayers who itemize Form 1040, Schedule A can deduct their SALT deductions up to a limit of $10,000. After 2025, unless lawmakers act, taxpayers will be able to deduct the full amount of state and local taxes they pay, just as they did before 2018.

Trump’s economic policy advisers oppose any increase to the $10,000 limit and urge Trump to lower the exchange limit or end the SALT deduction entirely. Meanwhile, several Democrats and Republicans on Capitol Hill in high-tax states such as New Jersey, New York and Illinois are pushing to raise the $10,000 limit.

Trump has floated the idea of ​​eliminating the $10,000 limit, which would allow stores to fully deduct state and local taxes again. Trump’s move is a surprise, given that he was the one who signed the law in late 2017 that established the $10,000 limit. Removing the cap would provide disproportionate benefits to higher-income taxpayers and cost the government significant profits that Trump and Congress would like to use for other proposed tax cuts.

When it comes to estate taxes, the Tax Reform Act of 2017 nearly doubled the federal lifetime exemption from the estate and gift tax. The estate tax exemption is $13. 61 million for those who died this year. After 2025, this figure will be minimized to the 2017 Amount, adjusted for inflation. That’s about $7 million.

The more sensible 40% estate tax rate was not replaced in the 2017 law. Since Trump says he needs to make the tax cuts in the 2017 law permanent, we believe this promise would also come with a higher exemption from the tax on gifts and life estates. It remains to be seen whether Trump needs further relaxations.

When it comes to corporate taxes, Trump supports reducing the existing corporate tax rate from 21% to 20%. He also said he would reduce it further to 15%, but only for companies that make their products in the United States. Trump provided main points about how this would work.

Trump has often said he wants a 10% (or 20%) across-the-board tariff on imported goods and a 60% tariff on goods imported from China. Although the tariffs would raise revenue for the U.S. government, they would also cause the prices of goods to go up for consumers.

Trump needs to maximize tax credits for businesses and individuals, which were passed under the Inflation Reduction Act of 2022.

He would bring back 100% first-year bonus depreciation and allow more expensing. And he would allow businesses to claim research and development tax deductions in the year the expenses are incurred, rather than requiring firms to amortize the costs over 5 years (or 15 years).

When Trump was president, he promised an end to the “Johnson Amendment.” And he repeated that vow again on the campaign trail ahead of the 2024 elections.

This federal tax statute, which has been on the books for 70 years, prohibits churches, charities and other 501(c)(3) exempt organizations from participating or intervening in political campaigns, either for or against a candidate running for office. Republican lawmakers have tried to get rid of this statue for years but to no avail.

We can’t talk about Trump’s tax proposals without also mentioning Project 2025. This policy project, designed for the next Republican administration, was led by the Heritage Foundation and includes a list of proposals desired by conservative-leaning think tanks Array.

There’s a lot in there on taxes, including the following proposed changes:

This was first seen in Kiplinger’s tax letter. It helps you navigate the complex world of taxation by keeping you up to date with new and ongoing adjustments to tax laws, offering tips for reducing your business and individual taxes, and predicting what the White House and Congress might do about taxes. Get a free portion of The Kiplinger Tax Letter or subscribe.

Joy is a tax attorney and CPA with experience with an L. L. M. in Taxation from New York University School of Law. After many years working for giant law and accounting firms, Joy saw the light and now puts her education, legal experience, and extensive knowledge of federal tax law into working writing for Kiplinger. He writes and edits The Kiplinger Tax Letter and contributes articles on federal taxes and retirement to kiplinger. com and Kiplinger’s Retirement Report. His articles have been picked up through the Washington Post and other media outlets. Joy has also appeared as a tax expert on newspapers, television, and radio to talk about federal tax advances.