#TrumpTaxCuts
The #TrumpTaxCuts refer to the Tax Cuts and Jobs Act (TCJA), a congressional revenue act signed into law by President Donald Trump in December 2017. This law made significant changes to the US tax code, including ¹:
- *Individual Income Tax Changes*:
- Reduced tax rates for individuals, with new brackets and rates such as 10%, 12%, 22%, 24%, and 33%
- Increased standard deduction and family tax credits
- Eliminated personal exemptions and limited deductions for state and local income taxes and property taxes
- *Business Tax Changes*:
- Reduced corporate tax rate
- Improved international tax system
- Boosted capital investment through reforms
The TCJA's individual tax cuts are set to expire in 2025, while business tax cuts expire in 2028. Extending these cuts could ²:
- *Increase Federal Debt*: Adding $4.5 trillion in deficits over 10 years, with long-run GDP increasing by 1.1% and offsetting $710 billion of revenue losses
- *Impact Economic Growth*: Potentially boosting after-tax incomes, particularly for high-income individuals, but with modest effects on median wages and economic growth