The Tax Cuts and Jobs Act (TCJA) lowered rates for individuals of nearly all income levels, though it cut taxes most for the highest earners and slashed the maximum corporate tax rate from 35 percent to 21 percent. The individual portions of that law expire in 2025, but Republicans who wrote the law made the business tax cuts permanent. If Republicans win control of Washington in November’s elections, they are preparing to extend former President Donald Trump’s 2017 tax cuts and further lower rates for corporations.
President Biden promises to raise taxes on the wealthiest individuals and corporations, allowing the Trump tax law’s individual rate cuts to expire for people earning over $400,000 and pushing for legislation with taxes on businesses to pay for new investments in child and elder care, affordable housing, and education.
