Republican lawmakers are using a well-known approach when it comes to taxes: cut them for a few years without explaining how they’ll be paid for in the long run. The idea is to offer temporary tax relief that becomes so popular with the public that future lawmakers will feel pressure to extend the cuts, even if they’re costly. This strategy has been used before, but the latest plan goes even further than past efforts.
Most Tax Breaks Set to End in 2028
The tax bill now being put together in Congress includes several new tax cuts that are meant to last only through the end of 2028. That timing is no coincidence—it lines up with the final days of former President Donald Trump’s possible second term. The plan includes a $500 increase in the child tax credit, a $1,000 bonus added to the standard deduction, and a promise to stop taxing tips and overtime pay. But after 2028, all of these benefits would disappear unless Congress acts to extend them.
Americans Could See Quick Tax Refunds
If the bill becomes law, most Americans would notice a difference in their tax refunds as early as next year. These changes could mean hundreds of extra dollars for families and individuals. One unusual part of the plan is aimed at newborns: babies born between January 1, 2025, and December 31, 2028, would get a $1,000 deposit into a new type of government account called a “MAGA account.” Children born outside of those dates would not qualify. This creates a very narrow window of financial benefit based solely on when a child is born.
A Political Boost for Trump
Donald Trump has made it clear that he likes to connect his name to direct financial support from the government. During his first term, he famously had his name printed on stimulus checks sent during the pandemic. This new tax plan follows the same idea—giving people noticeable financial benefits during his time in office. It’s a way to build public support and possibly influence the next election.
Critics Raise Concerns About Fairness and Impact
While the plan may sound appealing to many taxpayers, there are serious concerns. Many Democrats and some economists say the tax cuts are mostly helping wealthier Americans and big businesses. At the same time, the bill may include spending cuts to programs like healthcare and food assistance, which could hurt lower-income families. Experts also say that the short-term tax breaks might only give the economy a brief boost, like a sugar rush that quickly fades. Once the cuts expire, the country could be left with more debt and fewer resources for public programs.
