Section 4.2 - Q4 - What Does Project 2025 Say?

“All non-business tax deductions and exemptions that were temporarily suspended by the 2017 tax bill should be permanently repealed, including the bicycle commuting expense exclusion, non-military moving expense deductions, and the miscellaneous itemized deductions. The individual state and local tax deduction, which was temporarily capped at $10,000, should be fully repealed. Deductions related to educational expenses should be repealed. Special business tax preferences, such as a special deduction for energy-efficient commercial building properties, should be eliminated.”

Citation: Project 2025, Section 4.2: Department of the Treasury, William L. Walton, Stephen Moore, and David R. Burton, page 729, paragraph 3

Context:

No more deductions for any of those things. If you were keeping track, that’s no more tax writeoffs for moving expenses related to work (unless you’re in the military), no more deductions for tax preparation fees, work-related expenses not reimbursed by an employer, or cost of your home office setup. No more being able to deduct any state or local taxes from your federal tax return. No more deducting student loan interest and certain tuition expenses. No more deductions based on sustainable construction practices, which will discourage businesses from doing them.

This means that WAY more of your income is subject to taxation under this plan. This is a regressive tax, meaning that it impacts the wealthy far less than it would everyone else.

Full contextual analysis of Section 4.2: Department of the Treasury here.

Section: Section 4.2: Department of the Treasury

Categories: Taxes