#TrumpTaxCuts The Trump tax cuts, officially known as the Tax Cuts and Jobs Act (TCJA), were signed into law in December 2017. Here's a breakdown of the key points:

- *Estimated Cost*: The tax cuts are estimated to cost the federal government between $5 trillion and $11.2 trillion in lost revenue, primarily due to extending the 2017 tax cuts for individuals and small business owners.

- *Tax Changes*:

- *Individual Tax Cuts*: Most individual income tax cuts are set to expire in 2025, while business tax cuts expire in 2028.

- *Corporate Tax Rate*: The corporate tax rate was reduced, with the goal of stimulating economic growth and investment.

- *Standard Deduction*: The standard deduction was doubled to $24,000 for married couples and $12,000 for single filers.

- *Impact*:

- *Economic Growth*: Studies have shown mixed results on the impact of the TCJA on economic growth, with some indicating modest increases in GDP and wages.

- *Income Inequality*: Critics argue that the tax cuts disproportionately benefited high-income earners and large corporations, exacerbating income inequality.

- *Business Investment*: While some companies increased investment, others used the tax savings for stock buybacks and dividends.

Some notable outcomes of the TCJA include ¹:

- *Increased Deficits*: The tax cuts led to a significant decline in federal revenue, resulting in increased budget deficits.

- *Corporate Tax Receipts*: Corporate tax receipts fell by 31% in fiscal year 2018, the largest decline since 1934.

- *Criticism*: Many economists and experts criticized the tax cuts for being overly favorable to the wealthy and large corporations, while potentially harming lower- and middle-income taxpayers.