Add Row

Add Element

update

Kozi Checks & Balances
Media Site Home

update

Add Element

Categories

Add Row

Add Element

update

Kozi Checks & Balances TaxTactics News

update

December 13.2024

2 Minutes Read

Rising Taxes in 2026? How Baselines and the TCJA Impact Your Wallet

Professional man smiling confidently, TCJA expiration context.

Understanding the Budgetary Baseline Debate

Taxes might soon rise for millions of Americans if Congress doesn't act by January 1, 2026. This is because the provisions of the Tax Cuts and Jobs Act (TCJA) are set to expire. While lawmakers discuss ways to address this potential cliff, the approach to measuring the budgetary impact of extending these cuts is a hot topic. Sen. Mike Crapo suggests using a "current policy baseline" rather than the "current law baseline." This means planning for future budgets as if extending the TCJA tax cuts would have no additional impact on revenue.

The Impact on Taxpayers and Government Debt

If the TCJA isn't extended, a significant tax increase awaits nearly 62% of tax filers. On average, taxpayers could face a $2,853 hike with the expiration of individual provisions. However, if lawmakers adopt the current policy baseline for future budgeting, the deficits and national debt could rise as the extension would show zero immediate budget impact. Yet, this doesn't change the actual forecast for increased debt due to lower revenue under extended tax cuts, adding complexity to already intricate fiscal planning.

Why Should You Care?

Most taxpayers are unaware of the looming tax changes. Understanding the potential changes can help individuals better prepare for future financial planning. By learning about these baseline debates, you can have informed discussions and perhaps contribute to a community-wide awareness, ensuring everyone is better prepared for any financial shifts that may come their way.

Tax Deduction Deep-Dives

Write A Comment

Related Posts All Posts

01.21.2026

Why North Carolina Doesn't Need Higher Local Taxes: Economic Insights

Update North Carolina's Tax Climate Reflects Growth, Not Need for IncreaseIn recent years, North Carolina has successfully revamped its tax system, establishing a framework that has fueled economic growth without necessitating higher local taxes. With projected population growth rising to nearly 11 million and a booming job market, the state's tax reforms are proving to be effective.Revenue Surges Amid Economic ResilienceDespite calls for increased local taxes, the data showcases a steady increase in tax revenues across North Carolina's municipalities. As reported, local governments have witnessed revenue growth driven primarily by higher property values and an expanded sales tax base. This uptick indicates the current tax structure is not only adequate but flourishing, rendering additional tax powers unnecessary for local authorities.The Importance of Fiscal CautionCurrent economic forecasts suggest caution as various factors, including federal tariffs and market fluctuations, exert pressure on revenues. According to analysts, revenues have fallen short of predictions, prompting a revised budget outlook for the state. It is crucial for budget writers in Raleigh to balance necessary spending with maintaining the state’s business-friendly atmosphere that has been pivotal to attracting new residents and growth.Implications for Local PolicyThe debate around local taxation presents an opportunity for North Carolina's policymakers to prioritize well-considered budgetary practices rather than defaulting to tax increases. Gradual revenue adjustments can ensure that local governance remains effective while also keeping the burden on taxpayers low.A Strategic Path ForwardNorth Carolina's experience serves as a case study in effective tax policy. By aligning tax structures with economic principles and cautious budgeting, the state can continue to thrive without overburdening its residents. Supporting existing local revenue growth mechanisms, while watching for evolving economic challenges, lays the foundation for sustainable development.

01.13.2026

Exploring Sources of Personal Income in 2022: An In-Depth Analysis

Update Analyzing Personal Income Sources for 2022 The federal income tax represents the backbone of U.S. revenue streams, and for tax year 2022, taxpayers across the nation reported an impressive total of approximately $15 trillion in income. Notably, wages and salaries comprised about 65% of this income, reinforcing the traditional role of employment as the primary source of earnings for the majority of Americans. The Role of Retirement and Investment Income Retirement incomes play an increasingly vital role in the financial lives of Americans. In 2022, retirement accounts, pensions, and Social Security benefits contributed nearly $1.8 trillion to overall income. This reliance on retirement funds highlights the importance of financial planning in preparation for retirement—a critical aspect of current American economic realities. As people transition into retirement, they must consider how best to utilize these income sources in a way that sustains their living standards. Understanding Business Income Dynamics In addition to traditional earnings and retirement benefits, business income is another substantial contributor to reported personal income. For 2022, businesses filing as partnerships or S corporations contributed around $1.6 trillion, illustrating the significant weight of entrepreneurial endeavors within the economy. With the recent shift toward online business models and the gig economy, many Americans are likely to find diverse sources of income that could reshape their financial portfolios. Investment Income Trends Investment income saw a notable downturn in 2022, amounting to around $1.8 trillion. This decline, compared to a peak of $2.6 trillion in 2021, can be largely attributed to the faltering stock market. Understanding these trends is crucial for potential investors as they navigate their own assets and income sources, adjusting their strategies according to the current economic climate. Evolving Income Composition: A Look Ahead Exploring shifts in income types over the last year unveils important lessons for policymakers and individuals alike. For example, income trends show substantial changes year over year, with capital gains dwindling amid economic turbulence. Taxpayers can benefit from staying informed about these trends, as they greatly influence earning potential and overall economic well-being. As Americans prepare for future tax seasons, understanding these components of personal income will provide a roadmap for better financial decision-making. If you are looking to optimize your financial strategies in light of these insights, now is the time to assess your income sources and tax implications to ensure fiscal resilience in the years to come.

01.07.2026

Navigating State Corporate Income Tax Rates for 2026: Essential Insights

Update Understanding Corporate Income Tax Rates Across the U.S.As of 2026, corporate income tax (CIT) continues to be a significant factor in the operational landscape for businesses across 44 states. These taxes are levied on the profits of corporations, but many entities avoid the CIT by being classified as pass-through businesses, which report income on individual tax returns.Variability in Tax Rates.Corporate tax rates vary widely by state. North Carolina offers a competitive flat rate of 2.0%, while New Jersey's top marginal rate stands at a steep 11.5%. Notably, four states—Georgia, Nebraska, North Carolina, and Pennsylvania—have recently reduced their corporate tax burdens effective January 1, 2026. Meanwhile, the national average top marginal rate hovers around 6.57%.The Impact of Gross Receipts Taxes.Some states, like Nevada and Texas, impose gross receipts taxes instead of corporate income taxes. This approach, while different, can impose heavier financial burdens on businesses because it taxes total revenues without deductions for costs, potentially leading to adverse economic effects known as tax pyramiding. Conversely, South Dakota and Wyoming maintain a unique tax stance—excepting corporate income tax and gross receipts taxes altogether, creating a favorable environment for businesses.Trends and Predictions.With corporate income tax reductions becoming a trend among several states, businesses may find more favorable tax environments conducive to growth. Hence, staying informed on state tax legislation is crucial for corporate strategies.Conclusion: Why This Matters.The state of corporate income tax in 2026 will significantly influence the competitive landscape for businesses. Knowing the rates and trends can help companies make informed financial decisions. As states continue to adjust their tax frameworks, navigating these changes is essential for long-term success.

Rising Taxes in 2026? How Baselines and the TCJA Impact Your Wallet

Understanding the Budgetary Baseline Debate

The Impact on Taxpayers and Government Debt

Why Should You Care?

Terms of Service

Privacy Policy

Core Modal Title