Taxes are due to modestly increase across the board if Trump-era tax cuts are allowed to expire at the end of 2025.
The 2017 cuts reduced individual tax rates by up to 4%, depending on income levels. Legislators set an expiration date for the cuts because of Congressional rules designed to limit the long-term impact of tax and spending changes on budget deficits.
President Biden has pledged not to raise taxes on households making less than $400,000, suggesting that he will work with Congress to extend or offset the cuts before they expire. Temporary Bush-era tax cuts were extended in 2010 and made permanent in 2012.
The center-left Tax Policy Center noted that drawing additional tax revenue only from the 5% of Americans who make $400,000 or more could make it difficult for Biden to finance his infrastructure proposals.