Will the 2017 Tax Cuts Stay? What Families Need to Know

What’s Happening with the 2017 Tax Cuts?

Have you heard people talking about taxes again? It’s because the 2017 tax cuts are set to end soon—at the end of 2025. But now, there’s a big debate in Congress about whether to keep them around for good. Some leaders want to make the tax cuts permanent. Others say it’s a bad idea.

In this article, we’ll explain what the 2017 tax cuts are, what happens if they stay forever, and how this could affect your money, your family, and the country.

Let’s break it down in a way that’s super easy to understand.

What Are the 2017 Tax Cuts?

Back in 2017, the U.S. government passed a law called the Tax Cuts and Jobs Act (TCJA). It made a lot of changes to how taxes work in America. Here are some of the biggest ones:

• Lowered income tax rates for most people
• Doubled the standard deduction, so people could earn more before paying taxes
• Gave big tax breaks to businesses
• Increased the child tax credit to help families with kids

These changes were meant to help people keep more of their money. But here’s the catch: many of these changes were temporary. They were only supposed to last until the end of 2025.

What’s the Big Debate?

Now that 2025 is getting closer, lawmakers have to decide what to do. Should they:

• Let the tax cuts expire (go away)?
• Or make them permanent (stay forever)?

People in government are fighting about this. Some think it’s a great idea to keep the tax cuts going. Others believe it could hurt the country in the long run.

Why Do Some People Want to Keep the Tax Cuts?

Here are the main reasons some lawmakers want to extend the 2017 tax cuts:

1. Lower Taxes Help Families

People like paying less in taxes. If the tax cuts stay, most families will continue to keep more money in their paychecks.

2. It Could Help the Economy

Supporters say that lower taxes help people spend more. When families buy more things, it can help businesses grow. This could make the economy stronger. Some experts even say the economy might grow by 1.1% in the long run.

3. Businesses Like It Too

The tax cuts also helped many businesses, especially big ones. Lower taxes can mean more money for hiring workers or building new stores and offices.

Why Are Some People Against It?

Not everyone thinks keeping the tax cuts is a good idea. Here’s why:

1. It Would Cost a Lot

If the tax cuts stay, the government would collect $4.5 trillion less from 2025 to 2034. That’s a huge amount of money that could have gone toward schools, roads, and hospitals.

2. More National Debt

If the government collects less money but keeps spending the same (or more), it has to borrow money. That adds to the national debt—which is already very high. Some people say we can’t afford to add more debt.

3. Rich People May Benefit More

Some critics say that the tax cuts help the wealthy more than working families. They believe this isn’t fair and that the money could be better spent helping those in need.

What Happens If the Tax Cuts Expire?

If nothing is done, the tax cuts will end after 2025. Here’s what that would mean:

• Your taxes might go up. Most people would see smaller paychecks because more money would go to taxes.
• The child tax credit would shrink. This means families with kids may get less money back at tax time.
• Business taxes would go up. This could slow down hiring and new business growth.

What Happens If the Tax Cuts Stay?

If the tax cuts are made permanent:

• Your taxes would likely stay the same. You would continue to keep more of your paycheck.
• Families would still get a bigger child tax credit.
• The national debt would get bigger. The government would collect less money but still spend a lot.

What Is the National Debt?

The national debt is the total amount of money the U.S. government owes. Think of it like a giant credit card bill that keeps growing. When the government spends more money than it collects in taxes, it has to borrow the rest. That adds to the debt.

Right now, the debt is already very high—over $34 trillion. If the 2017 tax cuts are made permanent, experts say we could add another $4.5 trillion in debt over the next 10 years.

What Should You Know as a Family?

This tax debate isn’t just for politicians. It affects everyday people too. Here’s what you should keep in mind:

• Watch your paycheck. If the tax cuts expire, you might see less money coming home.
• Budget wisely. Taxes may change, so it's smart to plan for all possibilities.
• Stay informed. Know what your leaders are saying about taxes. You can even write to your local representatives to share your thoughts.