Trump 2.0: The First 100 Days | United States

Tax Cuts & Jobs Act Increase in Federal Deficit (2025-2034) to Extend TCJA

Impact on CRE

• Currently, different versions of the TCJA extension are circulating in the House and the Senate. However, the latest official estimate provided at the request of Congress by the CBO suggests the full extension could cost more than $5 trillion over the next 10 years. • Several other organizations who do such estimates have similar tallies for the various options that are circulating. • The latest proposals include reducing the corporate tax rate on domestic producers, a higher SALT cap of $25,000, no tax on tips, and a higher marginal income rate on extremely high earners.

$9

$0.2

$0.2

$8

$0.3

$0.4

$0.7

$7

-$1.2

$0.7

$6

$0.7

$5.2

$1.3

$5

-$1.7

$4

$1.4

$3

$2.2

$2

$1

• President Trump appears to favor the House

version, which has more spending cuts attached to it, roughly around $2 trillion.

$0

• Regardless of what specific provisions cross the finish line, the deficit is expected to grow in the coming years. • Although a rising deficit has longer-term implications, we do not expect it to have a material impact on the CRE outlook in the near-term.

Source: Congressional Budget Office, Bipartisan Policy Center

CONTENTS

CONTENTS

Cushman & Wakefield