FIREchief
Recycles dryer sheets
- Joined
- Aug 19, 2016
- Messages
- 177
In late 2017, Washington enacted various changes to the tax laws effective for 2018. As I understand it, most of the provisions (notably, the reductions to individual income tax rates and the increase of the standard deduction) are due to sunset in 2025. I believe that this was driven by the use of reconciliation to pass the legislation. This allowed the changes to be passed by simple majority in the Senate, rather than requiring a Republican super majority (the Republicans held a majority in both houses at that time). Joe Biden recently claimed that he would immediately reverse much of the tax reductions if elected. Can he do this without the Democrats holding both houses of congress? I ask not as a political question, but because my current financial planning assumes the laws will not change until at least 2026. I'm asking only to better understand the laws. Granted, I'm hoping that the rates will stay low until at least the end of 2025. Thanks.