Technologies

Extending the 2017 Trump Tax Cuts? Here’s Who Might and Might Not Benefit

Republicans in both chambers of Congress have passed plans to extend the 2017 Trump tax cuts, which continue to face fierce criticism for favoring the wealthy.

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It’s not just the tariffs. President Donald Trump’s economic plans also call for an extension of his 2017 tax overhaul before it expires. These changes — commonly known as the «Trump tax cuts» — lowered tax rates and increased the value of certain tax incentives but also have been a political lightning rod over the years because of their benefits for corporations and the wealthy. It’s the sort of heated discourse that can leave the basic facts of the bill a bit murky.

That 2017 tax plan, officially known as the Tax Cuts and Jobs Act, was one of the signature legislative accomplishments of Trump’s first term, and passing an extension has been a priority for the president since he entered his second term. While extending the cuts carries a big estimated price tag, Trump administration officials have suggested that newly imposed tariffs could raise enough money to cover the cost of extending the tax cuts, an important consideration in the budget reconciliation process. But the clock is ticking: Many of its provisions are set to expire by the end of 2025 without action from Congress.

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That action is getting underway. As of April 10, the House and Senate have passed separate versions of a plan that would extend Trump’s tax cuts and slash more government spending to pay for them. The situation remains contentious, as shown by the slim margins by which the bills passed: 216-212 in the House, and 51-48 in the Senate. With two bills passed, they will now be merged in a process known as «reconciliation,» which can help Republicans bypass the 60-vote limit usually needed to overcome a filibuster. While the GOP has characterized extending the tax cuts as a bid for stability that will benefit everyone, Democrats have long countered that the benefits of the Tax Cuts and Jobs Act are overly weighted toward the wealthiest taxpayers.

For all the details about why there might be some truth to both statements, keep reading, and stick around to the end to find out how much it might cost. For more, find out if Trump could actually abolish the Department of Education.

What would extending the Trump tax cuts mean?

While the phrase «Trump tax cuts» has become a common media shorthand for the Tax Cuts and Jobs Act, the current conversation around it might suggest that new cuts could be on the way. Although Trump has floated ideas for additional cuts, it’s important to note that extending the 2017 provisions would for the most part keep tax rates and programs at the levels they’ve been at since then.

So while it may be a better option than having the provisions expire — which would increase certain tax rates and decrease certain credits — extending the tax cuts most likely won’t change how you’ve been taxed the past eight years. However, some estimates have predicted that extending the cuts would boost income in 2026, with the conservative-leaning Tax Foundation in particular predicting a 2.9% rise on average, based on a combination of other economic predictions combined with tax rates staying where they are.

What would change if the Trump tax cuts expire?

Republicans contend that the tax cuts helped a wide swath of Americans, and the Tax Foundation predicted that 60% of tax filers would see higher rates in 2026 without an extension.

A big part of that has to do with tax bracket changes. The 2017 provisions lowered the income tax rates across the seven brackets, aside from the first (10%) and the sixth (35%). If the current law expires, those rates would go up 1% to 3%.

Income limits for each bracket would also revert to pre-2017 levels. Lending credence to the Democrats’ counterarguments, these shifts under the Trump tax cuts appeared to be more beneficial to individuals and couples at higher income levels than to those making closer to the average US income.

If you’re interested in the nitty-gritty numbers, you can check out the Tax Foundation’s full breakdown. Another point in Democrats’ favor? The Tax Cuts and Jobs Act also cut corporate tax rates from 35% to 21%, and unlike many of its other provisions, this one was permanent and won’t expire in 2026.

The cuts also capped the total amount that taxpayers can deduct based on «state and local property, income, and sales tax,» otherwise known as SALT, at $10,000. There was previously no limit, and as Lisa Greene-Lewis, a tax prep expert and analyst for TurboTax, told CNET in an email correspondence, this is a policy that could be detrimental to certain taxpayers if the TCJA is extended.

«Filers living in states with high state and property taxes are capped at a $10,000 deduction for total state and local property, income and sales tax — even when many of them may pay way beyond that amount,» Greene-Lewis explained. «If this part of the provision went back to the way it was prior to the Tax Cuts and Jobs Act (TCJA) without caps, filers in states with high state and property taxes would be able to deduct the full amounts paid.»

Greene-Lewis also noted that there is talk about removing the SALT cap from the plan to extend the TCJA.

What would happen to the standard deduction?

This is another area in which a lot of people would be hit hard. The standard deduction lets taxpayers lower their taxable income, as long as they forgo itemizing any deductions.

For the 2025 tax year, the standard deduction is $15,000 for individual filers, and $30,000 for joint filers. If the tax cuts expire, these numbers will drop by nearly half, down to $8,350 for individuals and $16,700 for joint filers.

What would happen to the child tax credit?

The child tax credit is one of the most popular credits out there. Its current levels — $2,000 per qualifying child, which phases out starting at a gross income of $200,000 for single filers and $400,000 for joint filers — were actually set by the Tax Cuts and Jobs Act.

If an extension or new bill isn’t passed, next year the child tax credit would revert to its old levels: $1,000 per child, which starts phasing out at $75,000 for single filers and $110,000 for joint filers.

Do the Trump tax cuts really favor the wealthy?

As mentioned above, higher-income individuals and couples made out notably better with the changes the Trump tax cuts made to tax brackets. Overall, numerous estimates have predicted that the wealthiest Americans would experience a greater proportion of the benefits, with the Urban-Brookings Tax Policy Center specifically estimating that households making more than $450,000 a year would reap around 45% of the tax cut benefits.

How much would extending the tax cuts cost?

Tax cuts more favorable to the wealthy are a big part of why some analysts say extension of the Trump tax cuts would add trillions of dollars to the national debt. An early estimate from the Tax Policy Center in 2018 found that extending the provisions through 2038 would add $3.8 trillion to the US deficit. A 2024 estimate from the Committee for a Responsible Federal Budget predicted that it would add $3.9 trillion to $4.7 trillion to the deficit through 2035, depending on which provisions were included.

The blueprint passed by the House last week included about $4.5 trillion in tax cuts, to be supported by $1.5 trillion in further government spending cuts. The rest would either go to the deficit or have to be made up for with additional cuts, adding fuel to the concerns that Republicans intend to substantially cut funding for Medicare, Medicaid and Social Security to pay for their tax plans.

For more, find out if IRS layoffs will hurt your tax return.

Technologies

New Speed Test Data Reveals the Nation’s Fastest Internet Service Provider

Technologies

Today’s NYT Connections Hints, Answers and Help for July 29, #779

Get hints and the answers for NYT Connections puzzle July 29, #779 — we’re all betting you’ll need mechanical help with this one.

Looking for the most recent Connections answers? Click here for today’s Connections hints, as well as our daily answers and hints for The New York Times Mini Crossword, Wordle, Connections: Sports Edition and Strands puzzles.

Card players, today’s NYT Connections puzzle is for you. Need more help? Read on for clues and today’s Connections answers.

The Times now has a Connections Bot, like the one for Wordle. Go there after you play to receive a numeric score and to have the program analyze your answers. Players who are registered with the Times Games section can now nerd out by following their progress, including number of puzzles completed, win rate, number of times they nabbed a perfect score and their win streak.

Read more: Hints, Tips and Strategies to Help You Win at NYT Connections Every Time

Hints for today’s Connections groups

Here are four hints for the groupings in today’s Connections puzzle, ranked from the easiest yellow group, to the tough (and sometimes bizarre) purple group.

Yellow group hint: Maybe it’s on clearance.

Green group hint: Quit hassling me!

Blue group hint: Ante up!

Purple group hint: Many soap dispensers.

Answers for today’s Connections groups

Yellow group: Discount.

Green group: Irritate.

Blue group: Poker actions.

Purple group: Things you can pump.

Read more: Wordle Cheat Sheet: Here Are the Most Popular Letters Used in English Words

What are today’s Connections answers?

The yellow words in today’s Connections

The theme is discount. The four answers are deal, promotion, sale and special.

The green words in today’s Connections

The theme is irritate. The four answers are bug, nettle, ruffle and steam.

The blue words in today’s Connections

The theme is poker actions. The four answers are call, check, fold and raise.

The purple words in today’s Connections

The theme is things you can pump. The four answers are brakes, fist, gas and iron.

Quick tips for Connections

#1: Say the clue words out loud, pausing before and after each. That helps you hear the words in the context of a phrase. The Connections editors love to group words together that are used in similar phrasing, like ____ Up.

#2: Don’t go for the obvious grouping. These editors are smart. Once, they offered SPONGE, BOB, SQUARE and PANTS in the same puzzle. None of those words were in the same category. If you like, hit the «shuffle» button to give yourself a different perspective on the words.

#3: Break down any compound words and look for similarities. «Rushmore» was once in a puzzle where the connection was that each word started with the name of a rock band.

Technologies

Xbox Game Pass Adds Grounded 2 and Other Games This Month

Game Pass subscribers can also play the new ’90s-inspired horror game Abiotic Factor now.

The award-winning, quirky survival game Grounded is like the game version of the classic ’80s comedy film, Honey, I Shrunk the Kids. And Xbox Game Pass subscribers can get early access to that game’s sequel, Grounded 2, now.

Xbox Game Pass Ultimate, a CNET Editors’ Choice award pick, offers hundreds of games you can play on your Xbox Series X, Xbox Series S, Xbox One and PC or mobile device for $20 a month. A subscription gives you access to a large library of games, with new ones, including Doom: The Dark Ages, added monthly, plus other benefits such as online multiplayer and deals on non-Game Pass titles.

Here are the games Microsoft is bringing to Game Pass soon. You can also check out other games the company added to the service recently, like Tony Hawk’s Pro Skater 3 + 4.