The 2024 Elections and the Resonance of Trump’s 2017 Tax Code

The United States Presidential Election of 2024 is generating massive waves of anticipation as the public and political communities speculate the prospective financial ramifications and transformations. A central point of discussion and speculation is whether the prevailing tax laws, introduced in 2017 under Donald Trump's administration, will undergo modifications, bringing relief to some taxpayers or extending the existing structures.

The Tax Cuts and Jobs Act (TCJA) of 2017 instituted several substantive alterations to the U.S. tax code. One pivotal change was the augmentation of the standard deduction. Although this increment benefited numerous taxpayers by simplifying the filing process and decreasing taxable income, it posed disadvantages for homeowners, particularly those who previously capitalized on writing off their mortgage interest.

This increased standard deduction implies that itemizing deductions, which includes mortgage interest deduction, is less beneficial for many taxpayers, potentially diminishing the tax incentives of homeownership. In a contrasting perspective, taxpayers who opt for the standard deduction may benefit from a reduced tax bill and simplified tax filing.

Further, the 2017 Tax Reform placed limitations on the deduction of State and Local Taxes (SALT), impacting residents in high-tax states disproportionately by capping deductions at $10,000. This alteration led to increased federal tax liability for numerous taxpayers, particularly those in states with elevated income and property taxes

Additionally, the loss of the ability to write off unreimbursed job expenses has been a pain point for several taxpayers, especially those who incur significant employment-related expenses. This includes the 40% increase of employees working from home. Before the TCJA, these workers could have deducted on average 8% of their income on their personal taxes.

This includes the 40% increase of employees working from home. Before the TCJA, these workers could have deducted on average 8% of their income on their personal taxes.

As the 2024 elections approach, various tax policies are coming to the forefront as candidates elucidate their visions for the country's fiscal future. If a candidate advocating for amendments or repeals to the 2017 tax laws is victorious, it could signal changes to the standard deduction, SALT limitations, and the allowance for job expense deductions, potentially benefiting millions of taxpayers. On the flip side, if a candidate in favor of the existing tax structure, or even a more restrictive one, wins the election, the existing constraints and limitations could remain or intensify.

The possibility of an alteration in these tax laws makes the 2024 elections especially crucial for voters. The decisions made in the upcoming election can either fortify the current tax structures, creating enduring impacts on taxpayers, or can facilitate modifications, allowing for more flexibility and benefits to the taxpayers. The outcome of the election will inevitably reverberate through the economic landscape of the country, shaping the financial futures of its citizens and potentially redrawing the tax benefits or burdens they will bear.

In conclusion, the 2024 Presidential Election could play a pivotal role in determining the trajectory of the U.S. tax code, including the controversial components introduced in the 2017 reforms. It will be imperative for voters to be discerning of the fiscal policies advocated by the candidates, as the results could herald a shift in the taxation paradigm of the nation, either providing relief or extending the constraints of the current system. The discourse surrounding these prospective changes underscores the profound and lasting impacts the election can have on individual financial landscapes and the economic fabric of the nation.