Experts predict that Trump's tax plans could be complex in 2025, according to policy experts.

• Soon, Congress will discuss renewing tax breaks and the new proposals from President-elect Trump.
• The federal budget deficit presents competing priorities and concerns, making the debate complex.
• According to Howard Gleckman, a senior fellow at the Urban-Brookings Tax Policy Center, the issue is much more complex than simply pitting the reds against the blues.

Soon, Congress will discuss renewing tax breaks and the new proposals from President-elect Trump.

Agreeing on cuts and spending, however, could be a challenge.

During Trump's first 100 days in office, Republicans could initiate the budget reconciliation process and pass sweeping tax legislation through "reconciliation," bypassing the Senate filibuster with a majority in both the House of Representatives and Senate.

Experts at a Brookings Institution event in Washington acknowledged that choosing priorities could be challenging, particularly given the federal budget deficit.

According to Howard Gleckman, a senior fellow at the Urban-Brookings Tax Policy Center, legislators will be "representing their districts, not their party" in a panel discussion at the Brookings event on Tuesday.

"This is more complex than just a battle between reds and blues," he remarked.

89% of Americans do not consider themselves wealthy, according to market experts. They discuss the concept of "animal spirits" and its impact on investments. Additionally, leveraging the 0% capital gains bracket is a strategy that can be employed as the price of bitcoin rises.

'Political divisions' could be a barrier

Soon, Congress's slim Republican majority will engage in negotiations with various factions within their party, some of whom have conflicting objectives.

The Tax Cuts and Jobs Act, enacted by Trump in 2017, is a top priority for the next administration.

The TCJA includes provisions such as lower tax brackets, higher standard deductions, a more generous child tax credit, bigger estate and gift tax exemption, and a 20% tax break for pass-through businesses. However, these tax breaks will expire after 2025 unless Congress takes action to extend them.

Trump proposed new campaign ideas, including eliminating taxes on tips, ending taxes on Social Security benefits for older adults, and ditching taxes on overtime pay. He also suggested eliminating income taxes, creating an auto loan interest deduction, and lifting the cap on the federal deduction for state and local taxes.

Trump has also pushed for universal tariffs on imported goods.

As Molly Reynolds, a senior fellow in Governance Studies at Brookings Institute, stated, "The more we attempt to introduce, the greater the political divisions we must confront."

Tax bill could take longer than expected

The Republican tax bill could take months to undergo budget reconciliation due to the numerous steps involved, according to policy experts.

The deadline for Congress to fund the government and prevent a shutdown is Dec. 20. However, a stopgap bill could delay the deadline until January or March, potentially delaying Trump's tax priorities.

"Gleckman believes the notion that they will accomplish this task in 100 days is unwise. His prediction is that it will take until December 31, 2025 to complete, which may be overly optimistic."

Other policy experts suggest that the bill could pass by Oct. 1, 2025, which marks the end of the federal government's fiscal year.