In the wee hours of Nov. 6 when the U.S. presidential race was called for Donald Trump, many Americans made a prediction, some advisers say: A Trump victory means lower taxes are here to stay.
For the past year, many Americans were bracing for the expiration of the 2017 Tax Cuts and Jobs Act (TCJA), also known as the Trump tax cuts. TCJA was the largest overhaul of the tax code in 30 years. It included widespread tax reductions for businesses and individuals. Many of the benefits for individuals, including lower tax rates for nearly all Americans, expire at the end of 2025.
Now that Trump’s returning to the White House with a majority in both congressional chambers, advisers say TCJA’s likely to get extended.
“There was a little bit of relief with our clients, especially those who didn’t necessarily want him to win or vote for him,” said Daniel Milan, managing partner at Cornerstone Financial Services in Southfield, Michigan. “It’s almost to make themselves feel better about (Vice President Kamala Harris’) loss. It’s self-soothing, in a sense.”
What do Americans gain if Trump tax cuts are extended?
Potentially stronger investment portfolios and economy, at least in the short term: Americans have already seen their 401(k) and other stock market investments soar, partly on expectations Trump will keep corporate tax rates low and possibly, even lower them further, some advisers said. The blue-chip Dow and broad S&P 500 indexes surged to record highs the…
