If President Joe Biden follows through on his promise to allow the Tax Cuts and Jobs Act of 2017 to expire next year, Maryland taxpayers should start reconsidering their future personal budgets. This could result in a significant decrease in spendable income for the average Maryland taxpayer, estimated at $2,026. Despite what the media may portray, the reality is that tax rates were reduced and tax brackets were widened, benefiting all taxpayers.
If no congressional action is taken, tax rates, brackets, and other included benefits will revert back to the previous tax structure once the expiration takes effect. As a result, tax filings may become more complex without the tax simplification measures that were part of the TCJA implementation. Moreover, there are concerns that the expiration of the act could hinder future job growth.
With the upcoming election in November, it is crucial for individuals to consider the implications of this potential change in tax policy. The impact of such a decision could be far-reaching, especially as inflation continues to affect consumer spending habits. It’s important for taxpayers to stay informed and be prepared for any changes that may affect their financial well-being.
