#TrumpTaxCuts President Trump's proposed tax cuts for 2025 aim to extend key provisions from the Tax Cuts and Jobs Act (TCJA) while introducing new measures. Here's a breakdown ¹ ²:

- *Key Provisions:*

- *Extension of TCJA Provisions*: Make current lower tax rates permanent, retaining the top rate of 37% and increasing the standard deduction to $15,000 for single filers and $30,000 for married couples filing jointly.

- *New Tax Proposals*:

- Eliminate taxes on Social Security benefits

- Exempt tipped income and overtime pay from taxes

- Reduce corporate tax rate to 20% with a 15% rate for US manufacturers

- *Tariffs*: Implement a universal 20% tariff on imported goods and 60% on goods from China

- *Potential Impacts:*

- *Middle-Class Families*: Continued savings through extended TCJA provisions, increased standard deduction, and retained Child Tax Credit

- *High-Income Earners*: Benefits from extended lower tax rates and deductions, eliminating taxes on Social Security benefits

- *Businesses*: Reduced corporate tax rates and potential reinstatement of deductions like the Domestic Production Activities Deduction

- *Challenges and Considerations:*

- *Federal Deficit Impact*: Estimated $3.7 trillion increase in deficit over the next decade

- *Congressional Approval*: Balancing tax cuts with revenue generation or spending cuts will be crucial

The Tax Foundation estimates extending TCJA provisions would decrease federal tax revenue by $4.5 trillion from 2025 to 2034, with long-run GDP increasing by 1.1% and long-run GNP rising by 0.4% ².