Understanding the Federal Budget & the AMT

As we look toward 2025, the possibility of major changes to the tax code looms large. With Trump winning the Presidential election, many anticipate the Tax Cuts and Jobs Act (TCJA) of 2017 will be extended, potentially alongside new tax cuts. But before celebrating or worrying, let’s consider the bigger picture: the Federal Budget.

Here’s the reality:

• Federal Debt: $36 Trillion

• 2024 Federal Deficit: $2 Trillion

• 2024 Federal Spending: $6.9 Trillion

• Federal Revenue: $4.9 Trillion

This imbalance means borrowing $2 trillion—a figure that’s hard to ignore. If the budget remains unsustainable, we might see a resurgence of revenue-generating measures, including the Alternative Minimum Tax (AMT) for many more taxpayers again.

What’s your take? Could tax policy shift under the pressure of our federal debt? Let’s discuss the potential for changes like AMT and how they might affect taxpayers. Contact us today.