The expiration of the Tax Cuts and Jobs Act of 2017, which President Joe Biden has promised to let expire next year, could have a significant impact on the personal budgets of Maryland and the entire United States taxpaying public. If allowed to expire, the average Maryland taxpayer could see a reduction in spendable income of $2,026.
Contrary to what the media may suggest, the benefits of the act were not limited to the wealthy. Tax rates were reduced and tax brackets were widened, benefiting all taxpayers. Without congressional action, tax rates, brackets, and other benefits included in the act will be restored to their previous levels.
The expiration of the Tax Cuts and Jobs Act would also likely result in more complicated tax filings as it included measures to simplify the tax system. Additionally, it could have a negative impact on future job growth due to its potential removal from current policies. These factors highlight the need for Maryland residents and all taxpayers to reconsider their future personal budgets in light of any potential changes that may come if the act expires.
As we approach November’s election, it is important for individuals to stay informed about potential implications of allowing this legislation to expire. With rising inflation and economic uncertainty, being prepared for any changes that may affect financial well-being is crucial for all taxpayers across Maryland and throughout the country.
