National Economic Council Director Lael Brainard speaks at the White House January 11, 2024 in Washington, DC.
Drew Angerer | Getty Images
It is clear that we must end the 2017 tax breaks for the ultra-rich and reduce costly permanent corporate tax breaks.
Lael Brainard
White House National Economic Advisor
The multitrillion-dollar tax battle comes amid the ongoing debate over the national debt, and extending TCJA tax breaks would increase the budget deficit, according to the Congressional Budget Office.
Trump and other Republicans have pushed for a full extension of expiring tax breaks under the TCJA, which could add about $4.6 trillion to the deficit over the next decade, according to a Congressional report Budget Office released this week.
“The stakes couldn’t be higher”
“As we approach next year’s tax debate, the stakes could not be higher for the fairness of our tax system and for the fiscal future of our country,” Brainard said.
Renewing Biden’s commitment to “tax fairness,” she said the administration aims to extend expired provisions of the TCJA for middle-class Americans. These expansions would be financed by increasing taxes on the ultra-rich and big businesses.
Brainard said the original legislation primarily benefited wealthier Americans and “the fallout never happened.”
“Achieving a fairer tax system also means we cannot extend the expiring Trump tax cuts for those with incomes above $400,000,” she added.
The administration also wants to quadruple the tax on stock buybacks and add a 25% minimum income tax for billionaires, Brainard said.
Meanwhile, House Republicans have assembled teams to study and propose solutions to address the 2025 fiscal cliff.
“If the 2017 Trump tax cuts expire, an average family of four earning $75,000 would see their taxes increase by $1,500 per year,” said House Ways and Means Committee Chairman Jason Smith, R-Mo., in an April press release.
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