Simply put, the fiscal picture is not bright. Fixing this unsustainable position should be Congress’ and the president’s top priority.
April 15th is just around the corner. While we settle up our 2025 taxes, it is a good time to take stock of all the fiscal changes that have occurred. While some have been good, others were bad, and still others were simply ugly.
The Good
Starting with the good, the current affordability pinch could have been a lot worse. The One Big Beautiful Bill Act (OBBBA), signed into law last July, repealed scheduled increases in tax rates for taxpayers across the income spectrum, and stopped the standard deduction from being cut in half. Had these planned changes become effective, your monthly paycheck would be smaller today.
Avoiding a tax increase that you did not know was coming surely feels different than changes that reduce your actual tax payments. However, imagine the income pinch you would be managing had the current rise in energy costs been combined with a smaller after-tax income. Last year’s tax reform avoided this possibility and is helping many families better navigate current economic uncertainties.
Also helping to buoy the economy is the restoration of provisions that improve the incentives for businesses to invest in capital equipment and R&D. These changes will encourage more business investment, which is widely recognized as a critical driver of income growth in both the short- and long term.
Nothing contained in this blog is to be construed as necessarily reflecting the views of the Pacific Research Institute or as an attempt to thwart or aid the passage of any legislation.
With Tax Day around the corner, how are Trump’s tax policies impacting you?
Wayne H Winegarden
Simply put, the fiscal picture is not bright. Fixing this unsustainable position should be Congress’ and the president’s top priority.
April 15th is just around the corner. While we settle up our 2025 taxes, it is a good time to take stock of all the fiscal changes that have occurred. While some have been good, others were bad, and still others were simply ugly.
The Good
Starting with the good, the current affordability pinch could have been a lot worse. The One Big Beautiful Bill Act (OBBBA), signed into law last July, repealed scheduled increases in tax rates for taxpayers across the income spectrum, and stopped the standard deduction from being cut in half. Had these planned changes become effective, your monthly paycheck would be smaller today.
Avoiding a tax increase that you did not know was coming surely feels different than changes that reduce your actual tax payments. However, imagine the income pinch you would be managing had the current rise in energy costs been combined with a smaller after-tax income. Last year’s tax reform avoided this possibility and is helping many families better navigate current economic uncertainties.
Also helping to buoy the economy is the restoration of provisions that improve the incentives for businesses to invest in capital equipment and R&D. These changes will encourage more business investment, which is widely recognized as a critical driver of income growth in both the short- and long term.
That’s the good news.
Read the entire op-ed.
Nothing contained in this blog is to be construed as necessarily reflecting the views of the Pacific Research Institute or as an attempt to thwart or aid the passage of any legislation.