With Donald Trump's win of the presidency Tuesday, political watchers say one of his top priorities will be making his expiring tax cuts under the Tax Cuts and Jobs Act of 2017 permanent.
"Trump campaigned on making his expiring tax cuts permanent, emphasizing policies like deductions for business investment as well as tax cuts for individuals," Erica York, senior economist and research manager at the Tax Foundation in Washington, told ThinkAdvisor Wednesday.
Trump "also proposed several additional tax cuts on top of the expiring provisions, which could complicate the debate over how to balance tax cuts and fiscal responsibility," York continued. "Altogether he promised almost $8 trillion in tax cuts and $5 trillion in offsets, meaning his proposals would add at least $3 trillion to deficits over 10 years."
"Trump won largely on the economy," added Greg Valliere, chief U.S. policy strategist for AGF Investments in his Wednesday morning newsletter. "Now he will have to offer details of all the tax cut proposals he floated in recent months. Washington lobbyists will be busy in 2025."
Justin Miller, partner and the national director of wealth planning at Evercore Wealth Management, added on X that "With President Trump and a Republican majority in Senate, put on your seatbelts for the next Tax Cuts & Jobs Act 2.0. It could be another mad dash right before Christmas 2025."
Who Will Control the House?
While the Senate flipped to GOP control, control of the House remains undetermined as multiple seats have yet to be called, Raymond James analysts said Wednesday morning.
Trump's win and the outcome in Congress "increases expectations for further deregulation and a push for the extension/expansion of the 2017 tax changes, which we expect will be perceived by the market as positive," the Raymond James analysts said.
Republicans have picked up Senate seats in Ohio and West Virginia, "while easily holding onto seats" in Texas and Florida. Seats in seven states remain too close to call. The GOP will likely control at least 52 senate seats, or as many as 55 if everything breaks their way.
"Longer-term portions of his [Trump's] agenda that add to market volatility and inflation concerns — trade, taxes, tariffs, and immigration — need to be monitored," the analysts added. "A key tell for policy outcomes will be personnel decisions."
The Senate majority is shaping up to be a 54 to 55-seat majority, added Jeff Bush of The Washington Update. "This should enable him [Trump] to get his cabinet choices confirmed quickly."
All eyes are now on control of the House.
