Former President Donald Trump came under fire after President Joe Biden's campaign posted a leaked video showing Trump promising wealthy GOP donors "tax cuts."
Trump can be heard saying the following:
"You're all people who have a lot of money. You're all rich as hell. We're going to give you tax cuts [and] we're going to pay off our debt."
You can see the video below.
Trump was swiftly criticized.
Many of Trump's wealthy donors were staunch supporters of the Tax Cuts and Jobs Act of 2017 (TCJA), which is based on tax reform advocated by congressional Republicans and the Trump administration.
Interestingly, Speaker Mike Johnson has gone on record calling it "the first comprehensive tax reform in 31 years" that "will dramatically strengthen the U.S. economy and restore economic mobility and opportunity for hardworking individuals and families all across this country."
However, a CBO analysis at the time found the plan "gives substantial tax cuts and benefits to Americans earning more than $100,000 a year"—hitting the nation's poorest citizens particularly hard—and the legislation would "add an increase in the deficit of $1,414 billion over the next 10 years."
In 2019, the nonpartisan Congressional Research Service (CRS) released a report indicating the GOP tax bill was not beneficial to the economy, noting growth effects were "relatively small," the tax bill did not have positive effects on workers' bonuses, and it did not usher in a surge in wages.
While certain tax reductions for corporate profits were made permanent by the legislation, the lowered individual tax rates are scheduled to end on December 31, 2025, returning to their levels before the TCJA.
The future alterations to the tax code hinge largely upon which political party gains control of both the White House and Congress post the 2025 Inauguration Day.
Changes are imminent, whether the Republicans strive to maintain the cuts, Democrats aim to redefine the rates, or a bipartisan compromise is reached by a divided government. These shifts will impact taxpayers across the political spectrum.
