#TrumpTaxCuts

The Trump Tax Cuts, officially called the Tax Cuts and Jobs Act passed in 2017, made significant changes to U.S. tax laws. Here's a simplified summary:

Key Changes

Corporate Taxes: The rate dropped from 35 percent to a flat 21 percent.

Individual Taxes: Rates were lowered temporarily, set to expire after 2025.

Standard Deduction: Nearly doubled for most filers (e.g., joint filers rose from 12,000 to 24,000).

Child Tax Credit: Increased to 2,000 per child.

State/Local Tax Deductions: Capped at 10,000.

Effects

Savings: Most households saved on taxes initially, averaging around 1,600 in 2018.

Income Groups:

Lowest earners (20-30k income) saw the largest percentage tax cuts (13.5 percent).

Top 1 percent paid 45 percent of all income taxes post-reform, up from 38.5 percent.

Wages: Median household income grew by approximately 5,000 after the law, outpacing prior years.