Tim Scott Warns Biden’s Removal of Trump Tax Cuts Could Harm Economy. Sen. Tim Scott, R-S.C., has criticized President Biden for his plan to let tax cuts passed under former President Trump expire if Biden is re-elected, calling it “the largest tax increase on the American people in the history of the country.” Scott argued that this move would take nearly $40,000 away from the average American family, who is already struggling with high inflation.
Scott also previewed a second Trump presidency, saying that Trump would seek “more tax cuts for workers, families, and all Americans” and would aim to “reinvigorate America’s energy industry to bring down inflation, lower the cost of living, and pay down our debt.”
The Tax Cuts and Jobs Act of 2017, which slashed rates in almost every tax bracket and decreased the corporate tax rate, will expire in part in December 2025. Whether these tax reforms are renewed will depend on who is in the White House and which party controls the House and Senate after the 2024 general election.
“You’re taking America from a mediocre competitive position and then making us uncompetitive, which means that our American companies will then face headwinds, which is only going to devastate our economy more,” Scott argued.
Scott criticized Biden’s claim that the tax cuts primarily benefited corporations and wealthy individuals, saying that the president may not understand the private sector. He also argued that raising the corporate tax rate to 28% would make America less competitive and harm the economy.
The White House defended Biden’s plan, saying that he would let the Trump tax cuts expire for the wealthy while protecting Americans making less than $400,000 from any tax increases. However, Scott and other Republicans argue that this move would still harm the economy and middle-class families.
Tax attorney Adam Brewer warned that if Congress doesn’t take action to extend the tax cuts or pass new tax cuts, the average American can expect a larger tax bill in Tax Year 2026.
Scott also reacted to news that Vice President Kamala Harris would be embarking on a “Nationwide Economic Opportunity Tour,” saying that he hopes it’s an “economic apology tour” for the impact of Bidenomics, including high gas prices and high food costs.
The senator, who has made economic development and opportunity a key priority during his time in the upper chamber, laughed, saying, “I hope it’s an economic apology tour, apologizing for the impact of Bidenomics.” He added that Harris should apologize for “the impact of a slow economy,” high gas prices, and high food costs.
Scott’s comments come as the Biden administration faces criticism for its handling of the economy. The administration has been accused of prioritizing progressive policies over economic growth, leading to high inflation and slow economic growth.
The tax cuts passed under Trump were a key part of his economic agenda, and their expiration could have significant implications for the economy. The Tax Cuts and Jobs Act of 2017 lowered tax rates for individuals and businesses, leading to increased economic growth and job creation.
However, the tax cuts were also criticized for increasing the national debt and benefiting corporations and wealthy individuals more than middle-class families. The expiration of the tax cuts could lead to increased taxes for many Americans, which could have negative implications for the economy.
