As Democrats rally around Vice President Kamala Harris at their convention in Chicago this week, a key tax deadline at the end of next year is approaching.

While financial advisors and tax experts are closely watching the December 31, 2025, expiration date for many parts of the Tax Cuts and Jobs Act of 2017, the presidential election between Harris and Republican former President Donald Trump and the race for seats in Congress will determine whether either party gets the mandate to reshape the law according to their ideas.

The Regulations expire will affect the taxes paid by every household and business in the country, according to Los Angeles-based auditor Miklos Ringbauer MiklosCPAThe possible renewals or discontinuations include such important things as the basic Income brackets that determine federal tax ratesThe higher floor in taxable residential areas And the percentages of profit companies pay, along with possible changes in areas such as child tax credits, special depreciation, the alternative minimum tax, the standard deduction and personal allowances, state and local taxes, the deductions for mortgage interest And qualified business income for transit companies and even the rules for gambling winningsnoted Ringbauer.

Changes in income tax brackets are the “absolute most important thing, and once you tell people that their wallets are going to feel that, they’re going to start paying attention,” he said in an interview. Business owners and other taxpayers should meet with their advisers or tax professionals to work out their plans for the impact on their tax rates and strategies under a Harris or Trump administration with divided power or one-party rule in Congress.

“They will be less stressed emotionally and financially because they have planned and know what is happening,” Ringbauer said of clients who prepare in advance. “There is no one who will not be affected by these changes.”

The tax policy proposals of the Trump and Harris campaigns and the Biden administration show major differences in terms of phase-out provisions, according to a tracker of the non-profit, non-partisan tax foundationNeither campaign responded to a request from Financial Planning for their official position on the Tax Cuts and Jobs Act.

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During her 2020 presidential campaign, Harris for the repeal of the entire lawexcept for the portions that benefit taxpayers earning less than $100,000 a year, and President Joe Biden has advocated for expanding the provisions applicable to households under $400,000. However, the Tax Foundation has classified Harris’ position as “to be determined,” based on the fact that she could potentially “continue the same policies that were in place in the Budget for the financial year 2025 the Biden-Harris administration or could propose further changes to tax policy.”

Last week, Harris revealed an economic plan with breaks and subsidies that Committee for a Responsible Federal Budget The study found that without appropriate taxes or other revenue sources, the deficit would increase by $1.7 trillion within a decade.

“The steps announced today will cut taxes for the middle class, reduce food costs, combat price gouging, Reducing the cost of owning and renting a homefurther reduce the cost of prescription drugs and alleviate the medical debt of millions of Americans,” the Harris campaign said said in a statement“These bold actions will address some of the biggest problems facing American families and strengthen their financial security.”

In contrast, Trump is pushing to make permanent all provisions affecting income and estate taxes and is considering replacing some personal levies with higher tariffs, the Tax Foundation noted. In recent weeks, he also said he would eliminate all taxes on Social Security benefits – which the Committee for a Responsible Federal Budget The federal deficit would increase by $1.6 to $1.8 trillion. The estimate of the cost of extending “large parts” of the Tax Cuts and Jobs Act has reached $4 trillion.

“Republicans will make permanent the provisions of the Trump Tax Cuts and Jobs Act, which doubled the standard deduction, increased the child tax credit, and boosted economic growth for all Americans,” the official 2024 GOP platform said“We will eliminate tip taxes for millions of restaurant and hospitality workers and seek further tax cuts.”

Tobias Salinger

Outside the McCormick Place conference room in Chicago, where the Democrats are holding their caucus meetings and other day-long events during the party convention, retired cardiology specialist Maureen Rzasa said a cap of $400,000 a year seemed “very high” to her.

Most people would be “pretty happy” if the next administration and Congress raised tax rates for “the higher-income folks,” she said. Still, she supports tax breaks for seniors, who often support their extended families financially.

“I think tax cuts for seniors are very important,” says 73-year-old Rzasa. “I’m a senior myself now, so these things are important to me. It would be really great if seniors could maybe get a little tax relief, or not have to pay any taxes at all if they were below a certain income.”

The sheer size of the law, not to mention the impossibility of predicting the makeup of the next Congress and presidential administration, leaves consultants, tax experts and their clients in a state of limbo. Campaign promises and rhetoric about changing the law usually lack detail and require the always complicated process of getting a law passed by Congress.

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Harris and Trump are “trying to target and propose issues that will attract additional voting blocs to their side,” and it is certainly “valuable to understand what a candidate stands for,” Ringbauer said. But rather than trying to predict the future, consultants and their clients can use the results to create different scenarios for possible policy changes, he said.

“Doing nothing is not an option,” said Ringbauer. “Not planning is not an option. This time it really is that simple, because everyone will be affected in one way or another. It is better to be prepared than to be surprised and then you may not be able to make any changes. ‘Plan, plan, plan’ are the magic words at the moment.”