How Might Congress Pay for Extending the Trump Tax Cuts

Congress may enact some revenue raisers to offset the tax cuts. We review some of the possible changes.

Photo by Melissa Askew on Unsplash

We know that the Republican Congress wants to extend or make permanent the “Trump” tax cuts. However, many want to also raise revenue in other areas of the Tax Code to help offset the cost of extension which could be as high as $5 trillion over 10 years.

Let’s look at some of the possible revenue raisers that farmers would be most unhappy about.

First, if the lifetime exemption at current levels is made permanent or if they eliminate the estate tax, we may see some changes on the income tax side. One option is to eliminate the step-up that heirs receive for assets inherited.