In a bid to stay afloat amid economic woes, President Biden finds himself clinging to a piece of former President Trump's legacy: the Tax Cuts and Jobs Act. Despite his earlier vow to overturn the cuts, Biden's inability to do so highlights the dire state of the economy under his administration and his desperation to avoid further tax burdens on struggling Americans.
President Biden's presidency has been characterized by a relentless pursuit to undo the policies of his predecessor, former President Donald Trump. From labor rights to energy regulations and border security, the Biden administration has sought to erase any trace of Trump's influence.
However, there is one glaring exception to this anti-Trump agenda: the Tax Cuts and Jobs Act, commonly known as the Trump tax cuts. Biden's reluctance to overturn these cuts exposes a fundamental contradiction in his economic strategy.
While campaigning for office, Biden railed against the Trump tax cuts, labeling them a giveaway to the wealthy. Yet, during his three-plus years in office, he has refrained from repealing them. Now, as the 2024 election looms, he has stated that if re-elected, he will allow the cuts to expire in 2025.
This declaration is a precarious proposition, given the current economic climate. Repealing the Trump tax cuts would result in significant tax increases for the majority of Americans, further burdening households already struggling to keep up with inflation and rising costs.
The personal saving rate has plummeted to historic lows, and household debt has reached an all-time high. Skyrocketing mortgage rates and housing costs have made it nearly impossible for many to purchase or afford homes.
A survey conducted by Redfin revealed that half of Americans are struggling to afford their housing expenses, with many skipping meals or delaying medical care to cover costs. This paints a stark contrast to the financial stability experienced under the pre-pandemic Trump administration.
Biden has sought to deflect blame for these economic woes, but Americans are well aware of the inflationary impact of his administration's policies. Despite this awareness, Biden's approval ratings remain low, and he faces an uphill battle in the upcoming election.
The Trump tax cuts have provided a lifeline for Biden, offering a measure of financial relief to Americans amid the economic turmoil. Biden cannot afford to overturn the cuts, as doing so would only exacerbate the already dire situation.
However, Biden's commitment to raising taxes in his second term suggests a fundamental shift in his economic philosophy. By targeting the "wealthy," Biden hopes to avoid the political fallout of raising taxes on the middle class. Yet, history has shown that such tax increases often have broader economic consequences.
The expiration of key provisions of the Tax Cut and Jobs Act in 2025 presents a dilemma for the next president. The incoming administration will have to either extend the cuts, allow them to expire, or devise a new taxation scheme.
In the meantime, Biden remains entangled in the paradoxical embrace of Trump's tax cuts, a policy he once vehemently opposed. This contradiction underscores his administration's failure to address the economic challenges facing the nation and its reliance on a policy born from the very legacy he sought to dismantle.
