WASHINGTON, DC – Donald Trump’s stunning and decisive return to power makes it official: We live in the Age of Trump. The 2008 global financial crisis was a turning point in history, and it is now clear that Trump is the dominant political figure of the post-crisis period
Trump began his rise to power in 2015 and has towered over the current decade. Vice President-elect J.D. Vance will work to extend his legacy into the 2030s. Like Andrew Jackson in the nineteenth century and Franklin D. Roosevelt in the twentieth, Trump has created and defined an era in American political history.
But the strength and endurance of Trump’s legacy will depend on whether his policies advance long-term prosperity. As the saying goes, nothing succeeds like success. His first big opportunity will come immediately. With key provisions of Trump’s 2017 Tax Cuts and Jobs Act (TCJA) – including lower individual tax rates and expansion of the child tax credit – set to expire at the end of 2025, Congress and the new administration will spend a considerable portion of the next year passing a new tax package.
Much of the focus will be on avoiding tax increases on households. But given that Republicans will control both the House of Representatives and Senate for the next two years, Trump also has an opportunity to extend tax cuts for businesses. Under an expiring TCJA provision, businesses are allowed to deduct the full cost of certain investments in the year the spending occurs, rather than over time. Such “full expensing” encourages more investment by increasing returns. The 2017 business tax cuts are already boosting investment and workers’ wages, as well as supporting multinational corporations’ domestic operations.
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