$10 Trillion at Stake: How the Expiration of the TCJA Will Affect Middle-Class Families in Swing States

The potential expiration of the Tax Cuts and Jobs Act (TCJA) in 2024 could significantly impact middle-class Americans in key swing states.

How Middle-Class Families in Swing States May Be Affected in 2024

As the 2024 election gets closer and the possible end of the Tax Cuts and Jobs Act (TCJA) is a big concern for middle-class Americans especially in important swing states. The TCJA which was passed during Donald Trump’s presidency, brought big changes like lower income tax rates and a higher standard deduction. However, some critics say these changes mainly helped the wealthy. Studies show that most workers did not see significant wage increases, and investment growth was not much affected. If President Joe Biden wins re-election and decides not to extend these cuts and middle-income Americans will see higher tax rates a lower standard deduction, and reduced child tax credits, returning to the rules before the TCJA, according to the report of Go Banking Rates.

The impact on middle-class families in key states such as Arizona, Georgia, Michigan, Nevada, North Carolina, Pennsylvania, and Wisconsin is still uncertain and widely debated. While tax cuts can help, the overall health of the economy is more important for financial stability. Under Biden’s administration and these states have seen strong economic growth with GDP increases in 2023 showing recovery and resilience. For example, Arizona and Nevada had GDP growth rates of 6.9% and 7.4%, respectively, while Michigan and Pennsylvania also saw significant gains highlighting the importance of broader economic conditions.

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(photo: Forbes)

Middle-Class Americans’ Financial Future Hangs in the Balance: Understanding the Impact of Tax Laws and Economic Trends on the 2024 Election

In the end, middle-class families in these crucial states will feel the effects of any changes to the TCJA. The economic situation is influenced by presidential policies and other factors like the COVID-19 pandemic. Voters will consider how these tax policies and the overall economy affect their lives as they head to the polls. The 2024 election’s outcome will greatly impact the financial future of middle-income Americans making it important to understand both tax laws and wider economic trends.

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