TCJA sunset: What happens if the tax cuts expire?

If Congress doesn’t act soon, the 2017 Tax Cuts and Jobs Act will expire, costing the average family of four more than $1,500 a year.

That’s a significant hit to already strained household budgets.

And this isn’t just a policy debate. It’s a real-world issue that affects families trying to pay for groceries, child care, gas, and rent in an economy still reeling from inflation.

Some recent reports suggest that the Trump tax cuts favor the rich. But a closer look at the data tells a different story: These tax reforms delivered broad relief and lasting growth for working Americans across income levels.

How the tax cuts helped everyday Americans

1. Lowered taxes across the board: Households at every income level saw lower tax rates, allowing families to keep more of their earnings and use them for daily needs instead of sending them to the government.
2. Simplified tax filing: The near doubling of the standard deduction meant more families could skip itemizing their taxes, saving time and reducing complexity.
3. Provided relief for small businesses: Lower tax rates helped small businesses reinvest, expand, and hire — fueling community-level growth.
4. Boosted economic growth: New investments rose by 20%, fueled by stronger business confidence and expanded economic opportunity.

What critics get wrong

Some have raised concerns that the current tax package could add to the national debt or reduce funding for social services. Let’s take a closer look at those claims and what the proposal actually does.

Three common misconceptions:

1. The tax cuts only help the rich: False. While wealthier families saw larger breaks in dollar amounts, 8 in 10 households received tax relief, and the average household could save $2,900 in 2026.
2. Tax reform failed to spur economic growth: Not true. Between TCJA’s introduction and the start of the pandemic, the U.S. added 5 million new jobs, and the unemployment rate reached its lowest level since the ‘60s at just 3.5% — a result of economic growth unleashed by letting Americans keep more of their own money, not excessive government spending.
3. Tax reform will explode the national debt: Our debt took decades to accumulate and is already soaring. A tax increase won’t change that. This bill would keep taxes down, helping to grow the economy and freeing Congress to focus on spending reforms. Economic growth coupled with spending restraint is the best path forward — not a tax hike.

The real-world risk of inaction

If Congress allows the TCJA sunset to proceed without action, Americans will face:

• Higher taxes and smaller paychecks
• Complicated filings with lower standard deductions
• Slower job creation as businesses deal with higher rates
• Greater economic uncertainty in an already volatile climate

Now is not the time to move backward. Families are still recovering from years of inflation and cost-of-living increases. Raising taxes would only make things worse.

The bottom line

The 2017 Trump tax cuts worked. They reduced the family tax burden by $1,500, lifted 6 million Americans out of poverty, and delivered record-low unemployment.

Letting the TCJA sunset would hurt the people struggling most — working Americans and small business owners trying to keep their lights on.

Tell Congress: Renew the Trump tax cuts and protect economic opportunity for all Americans.