WASHINGTON—There isn’t a dime’s worth of a difference between the political parties. The chasm is more like $6 trillion.
The winners of November’s presidential and congressional elections will quickly face decisions on extending tax cuts scheduled to expire after 2025. President Biden and Republicans support starkly different tax plans.
Republicans generally want to extend all expiring tax cuts from the 2017 law former President Donald Trump signed. The price tag: $4 trillion over a decade.
Biden proposed extending Trump’s tax cuts for households making under $400,000 annually but said the rest should expire. Beyond that, he would raise taxes further on top earners and corporations. That plan, including tax increases the president hasn’t fully detailed, would generate more than $2 trillion beyond current forecasts.
That $6 trillion gap is on the ballot, and the ultimate resolution will affect family budgets, corporate profits and the federal government’s fiscal health amid rising debt.