Confused about all the tax changes in the past decade? Just wait | CNN Business

CNN - Jan 15th, 2025
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In 2025, significant provisions of the Tax Cuts and Jobs Act (TCJA) from 2017 are set to expire, prompting lawmakers to debate their future. These expiring provisions include individual income tax rates, personal exemptions, the standard deduction, and the child tax credit, among others. The potential changes create uncertainty for taxpayers, who must navigate proposals and amendments to understand the impact on their finances. Tax professionals are preparing to guide clients through this period of flux, emphasizing the importance of maintaining good financial records and not making premature changes to withholdings.

The expiration of these provisions is a pivotal event, as the TCJA represents the most substantial tax code overhaul in decades. The debate over which provisions to extend, amend, or let expire is intricately tied to budgetary considerations, with estimates suggesting a $4.6 trillion cost over 10 years if all provisions are extended. This high-stakes discussion has significant implications for taxpayers, particularly those in high-tax states or with complex financial situations. As the year progresses, the outcome of this debate will shape the financial landscape for millions of Americans, underscoring the importance of staying informed and prepared for potential changes.

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RATING

7.6
Fair Story
Consider it well-founded

The news story provides a comprehensive overview of the Tax Cuts and Jobs Act and its potential expiration impacts, scoring well across accuracy, balance, and clarity. It effectively conveys complex tax information with the help of credible sources and professional insights. However, the story could improve by incorporating a broader range of perspectives, including those of policymakers and affected individuals, to enhance balance and depth.

While the story is factually accurate and uses reliable sources, it would benefit from more explicit sourcing and cross-verification for better transparency and source quality. Transparency could be further improved by disclosing potential biases or affiliations of the quoted professionals.

Overall, the story is well-written and informative, with clear language and a logical structure, but it could achieve greater impact by addressing the noted areas for improvement, thus providing a more holistic view of the tax debate and its implications.

RATING DETAILS

8
Accuracy

The news story appears to be largely accurate, providing a detailed account of the Tax Cuts and Jobs Act (TCJA) and its implications. It accurately describes the key provisions set to expire and discusses the ongoing debate surrounding these changes. The story includes specific facts and figures, such as the number of tax provisions set to expire and the projected cost of extending the TCJA, which are supported by reliable sources like the Joint Committee on Taxation. However, the story does not provide a comprehensive list of the sources for every claim, which could slightly hinder verifiability.

The quotes from professionals like Karla Dennis and Miklos Ringbauer add credibility, as they offer firsthand insights into the tax changes' impacts. The story does not seem to contain any glaring inaccuracies, but it could benefit from additional verification by cross-referencing governmental or official tax documents for more thorough factual substantiation.

Overall, the story maintains a high level of factual accuracy while explaining complex tax legislation changes, though it would benefit from more explicit sourcing and cross-verification of claims.

7
Balance

The news story provides a reasonably balanced view of the tax debate by including perspectives from tax professionals who are experiencing the effects of the TCJA firsthand. These voices highlight the challenges and confusion faced by both individuals and professionals due to the complexity of the tax changes. However, the story primarily focuses on the technical aspects of the TCJA and its impact on tax filers without delving deeply into the political or social perspectives that might influence or be influenced by these tax changes.

While the story does mention potential political fights, it does not provide detailed viewpoints from lawmakers or other stakeholders who might have differing opinions on the tax law's future. This omission could indicate a slight bias toward the technical side without fully exploring the broader socio-political ramifications.

To achieve greater balance, the story could include more perspectives from a range of stakeholders, including lawmakers, economists, and representatives from diverse socioeconomic backgrounds, to fully capture the multifaceted nature of the tax debate.

8
Clarity

The news story is generally clear and well-structured, effectively communicating complex tax information in a way that is accessible to readers. The language used is professional and neutral, avoiding emotive language that could detract from the story's objectivity. The story's structure logically flows from historical context to the current situation and future implications, making it easy for readers to follow.

Complex information, such as the various tax provisions and their potential impacts, is explained clearly, with examples that help to illustrate the points being made. However, the story could benefit from breaking down some of the more technical aspects into simpler terms or using visual aids to enhance comprehension further.

Overall, the story succeeds in maintaining clarity and professionalism, though it could improve by simplifying some technical jargon and employing additional explanatory tools to cater to a broader audience.

8
Source quality

The story cites professionals like Karla Dennis and Miklos Ringbauer, who are credible sources given their roles as tax professionals and representatives of professional tax organizations. Their insights provide a strong basis for understanding the practical implications of the tax law changes. The reference to the Joint Committee on Taxation adds to the credibility, as it is a reputable source for tax-related data.

However, the story could further enhance its source quality by including direct references to governmental reports or documents related to the TCJA. While the quoted professionals offer valuable insights, the reliance on a limited pool of voices could be expanded to include more diverse opinions and data points.

Overall, the cited sources are reliable and authoritative, but the inclusion of additional primary sources, such as official tax documents or statements from policymakers, would strengthen the story's credibility and provide a more comprehensive view of the situation.

7
Transparency

The news story is moderately transparent, explaining the context of the TCJA and the potential impacts of its expiration. It provides background on the 2017 tax overhaul and outlines the specific provisions that are due to expire, which helps readers understand the stakes involved. The story also offers practical advice from tax professionals, which adds value for readers seeking guidance.

However, the story could improve transparency by explicitly disclosing any affiliations or potential biases of the quoted professionals. Additionally, while it mentions the potential political implications of the tax debate, it does not thoroughly explore any conflicts of interest that might impact the reporting or the perspectives presented.

To enhance transparency, the story could include more detailed disclosures about the sources and the potential biases or limitations of the information presented, thereby allowing readers to better assess the impartiality and comprehensiveness of the reporting.