KPMG report: Expiring provisions in the 2025 “Tax Cliff”
Outline of many tax provisions set to expire
With more than $4 trillion of tax increases scheduled to take effect at the end of 2025, next year could be the most important year for tax legislation since 2017. It was in that year that a Republican Congress enacted the massive Tax Cuts and Jobs Act (TCJA), a bill that made major changes to both business and individual taxation. But many of the TCJA’s law changes were temporary only and are scheduled to expire at the end of 2025. This leaves next year’s Congress and administration, no matter the outcome of November’s election, to confront these looming tax increases.
Read a July 2024 report prepared by KPMG LLP that outlines the many provisions that are set to expire, alongside (where available) the official revenue estimates associated with making those provisions permanent. The chart also includes a long list of selected non-TCJA expired or expiring items that could be part of next year’s negotiations as well.
The challenge facing policymakers in 2025 is a daunting one and the massive price tag associated with extending 2017’s tax cuts could force Congress to seek new tax increases to offset these costs. It is hoped that this chart, by providing a sense of the relative costs and tradeoffs associated with these provisions, gives the reader an opportunity to handicap for themselves how 2025 might unfold.