The package of tax cuts enacted in 2017, officially known as the Tax Cuts and Jobs Act (TCJA), contains several provisions scheduled to expire at the end of 2025. These expirations primarily affect individual income tax rates, deductions, and credits. Without congressional action, tax liabilities for many individuals and families are projected to increase significantly starting in 2026.
The potential lapse of these tax policies carries substantial implications for the U.S. economy and household finances. The changes could alter investment incentives, consumer spending patterns, and the distribution of income. Analyzing possible extensions, modifications, or replacements to the existing legislation is essential for understanding future economic conditions and policy decisions.