In the wee hours of November 6 when the U.S. presidential race was called for Donald Trump, many Americans made a prediction, some advisers declare: A Trump win means lower taxes are here to remain.

For the history year, many Americans were bracing for the expiration of the 2017 responsibility Cuts and Jobs Act (TCJA), also known as the Trump responsibility cuts. TCJA was the largest overhaul of the responsibility code in 30 years. It included widespread responsibility reductions for businesses and individuals. Many of the benefits for individuals, including lower responsibility rates for nearly all Americans, expire at the complete of 2025.

Now that Trump’s returning to the White House with a majority in both congressional chambers, advisers declare TCJA’s likely to get extended.

“There was a little bit of relief with our clients, especially those who didn’t necessarily desire him to triumph or vote for him,” said Daniel Milan, managing associate at Cornerstone financial Services in Southfield, Michigan. “It’s almost to make themselves feel better about (Vice President Kamala Harris’) setback. It’s self-soothing, in a sense.”

What do Americans gain if Trump responsibility cuts are extended?

Potentially stronger resource portfolios and economy, at least in the short term: Americans have already seen their 401(k) and other distribute economy investments soar, partly on expectations Trump will keep corporate responsibility rates low and possibly, even lower them further, some advisers said. The blue-chip Dow and broad S&P 500 indexes surged to record highs the day after the election and have remained powerful.

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“Companies that delayed resource spending on election/regulatory uncertainty may now be prepared to commence putting money to work,” wrote chief international economist James Knightley and Dutch financial institution ING in a update.

That should bode well for corporate profits and market advancement, economists said.

Scott Anderson, chief U.S. economist at BMO Economics bumped up his 2025 market advancement projection to about 2.2% from 1.9%. “The Trump win is likely to at least temporarily bolster buyer and business confidence as well as distribute economy act,” he said.

Lower responsibility rates. One of the most significant changes for most Americans included lower returns responsibility rates. The top rate fell from 39.6% to 37%, the 33% bracket dropped to 32%, the 28% bracket dipped to 24%, the 25% bracket slid to 22%, and the 15% bracket fell to 12%. The lowest bracket remained at 10%, and the 35% responsibility bracket was unchanged. If the returns responsibility cuts aren’t extended, the affected brackets will revert to pre-TCJA levels.

With Trump’s triumph, “there’s renewed confidence these will be extended or become permanent responsibility cuts,” Milan said. “This is excellent information for our finances.”

With returns responsibility rates expected to remain low, Americans don’t have to feel rushed to do Roth IRA conversions, said Jim Czerniak, chief resource officer at Ambassador riches Management in Warrenville, Illinois.

A Roth conversion moves a traditional pre-responsibility IRA, SEP IRA, straightforward IRA, or 401(k) into a Roth IRA. People pay returns responsibility on the converted amount but can receive responsibility-free withdrawals later. Roth IRAs also aren’t subject to required minimum distributions.

Estate planning: High total assets individuals also don’t have to rush to provide away their assets to protect them from taxes, advisers said. The TCJA doubled the federal lifetime gift responsibility exemption amount and annually indexed for worth rise. In 2024, each person has a combined federal estate and gift responsibility exemption of $13.61 million dollars. At the complete of 2025, that exemption would have halved again.

“That was a top priority for clients, but the election basically made those conversations a moot point,” Milan said.

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Are there any downsides for consumers to an extended TCJA?

The biggest downside is adding to the ballooning budget deficit, but that pain may not be immediately apparent, economists and advisers said.

The nonpartisan, non-returns organization Committee for a Responsible Federal budget estimates packed extension of the Trump responsibility cuts could boost the federal deficit by $4 trillion to $5 trillion over ten years.

A rapidly increasing deficit could boost worth rise and long-term gain rates, economists said. That could cruel the costs of groceries, rent and services spike again, and that it becomes more expensive for businesses and individuals to borrow.

“Theoretically, the Fed may require to put its easing pattern on hold prematurely, or even reverse it, if worth rise gets out of hand,” Anderson said. “But again, this is more of a 2026 narrative than a 2025 one.”

Medora Lee is a money, markets, and money management reporter at USA TODAY. You can reach her at [email protected] and  subscribe to our free Daily Money newsletter for money management tips and business information every Monday through Friday morning.