#TrumpTaxCuts

TrumpTaxCuts

In April 2025, President Donald Trump and the Republicans in Congress are working on a new bill to extend and expand the tax cuts established by the Tax Cuts and Jobs Act of 2017 (TCJA).

Key Points:

Extension of Tax Cuts:

There are efforts to make the individual tax cuts permanent, as the current cuts will end at the end of 2025. They also plan to add new cuts, such as tips, Social Security income, and overtime wages from taxes.

Cost:

Extending these cuts will cost the government about $4.5 trillion over 10 years. With the addition of debt interest, the cost could reach $5.5 trillion.

Economic Impact:

Supporters say that making the tax cuts permanent will increase GDP by 1.1%, which could offset some of the tax losses.

Who Will Benefit?

Studies indicate that the top 5% of earners will receive 45% of the benefits from the extension.

If Not Extended:

Middle-class families may face a tax increase of $1,700 per year.