#TrumpTaxCuts The Tax Cuts and Jobs Act (TCJA), signed into law by President Donald Trump in 2017, brought significant changes to the US tax code. Here are some key aspects ¹ ²:
*Key Provisions*
- *Corporate Tax Rate*: Reduced the maximum corporate income tax rate to 21%
- *Individual Tax Rates*: Lowered tax rates for individuals, with varying impacts across income levels
- *Pass-Through Income*: Provided a deduction for pass-through income
- *Equipment Investment*: Allowed for expensing of equipment investment
- *International Tax Rules*: Redesigned international tax rules
*Economic Impact*
- *Short-Term Stimulus*: Stimulated the economy in the near term
- *Long-Term Impact*: Small long-term impact on gross domestic product (GDP)
- *Revenue Reduction*: Reduced federal revenues by significant amounts
*Criticisms and Concerns*
- *Increased Inequality*: Made the distribution of after-tax income more unequal
- *Federal Debt*: Raised federal debt and imposed burdens on future generations
- *Complexity*: Created new complexity and compliance issues
*Proposed Extensions and Changes*
- *Permanence*: President Trump has called for permanent extension of the 2017 tax cuts
- *Additional Policies*: Proposed policies include no taxes on tips, overtime pay, and Social Security benefits for retirees
- *Tariffs*: Imposed new tariffs on US imports, which could offset economic benefits of tax cuts