Higher Taxes
It can be hard to predict when the federal government will decide it’s time to get the national debt under control and start paying it down. But when it does, it will need to generate revenue to make those payments. One of the ways the government can generate revenue is by raising taxes.
At some point, this course of action seems likely. The passage of the Tax Cuts and Jobs Act in 2017 cut taxes for many Americans. In an environment with already-low tax rates and a growing national debt, the scales seem tilted toward a tax hike rather than an additional tax cut.
Plus, provisions related to individual income tax rates in the Tax Cuts and Jobs Act are already set to expire naturally at the end of 2025, meaning that even if Congress doesn’t go out of their way to raise taxes, this will automatically happen of its own accord in 2025.
