Sen. Tim Scott, a Republican from South Carolina, strongly criticized President Biden's plan to let the tax cuts passed under former President Trump expire if Biden is re-elected. Scott argued that allowing over $2.4 trillion in tax cuts to expire would result in the largest tax increase in U.S. history.
The Tax Cuts and Jobs Act of 2017, which included rate cuts in various tax brackets and reduced the corporate tax rate, is set to expire partially in December 2025. The decision to renew these tax reforms will depend on the outcome of the 2024 general election.
Scott, who played a key role in crafting the 2017 tax legislation, expressed concern over Biden's plan to let the tax cuts expire, stating that it would harm the American economy.
In response, Biden defended his position, arguing that the 2017 tax cuts primarily benefited the wealthy and corporations, leading to an increase in the federal debt. He vowed that if re-elected, the tax cuts would remain expired.
Trump campaign spokesperson criticized Biden's tax policy, highlighting Trump's tax cuts for Americans and promising more tax cuts if Trump were to be re-elected.
Scott also criticized Biden's proposal to raise the corporate tax rate, warning that it would make American companies less competitive and hurt the economy.
Regarding the current economic indicators, Scott attributed any positive trends to the foundation laid during the Trump administration. He emphasized the importance of wage increases in relation to inflation as a key indicator of economic health.
The White House defended Biden's tax plan, stating that it aims to protect Americans earning less than $400,000 from tax increases while letting the tax cuts for the wealthy expire.
Tax attorney Adam Brewer warned that without congressional action, Americans could face higher taxes in 2026. The article also mentioned Vice President Kamala Harris's upcoming economic tour, which Scott criticized as an 'economic apology tour' for the impact of Biden's economic policies.
