“Trump's tax cuts” refers to the package of tax laws enacted during the presidency of Donald Trump, specifically through a well-known law called the Tax Cuts and Jobs Act (TCJA).
It was signed in December 2017 and took effect at the beginning of 2018.
Key features of Trump's tax cuts:
•Reduced the corporate tax rate from 35% to 21%.
•Tax cuts for individuals at varying rates, along with an increase in the standard deduction.
•Elimination or reduction of many traditional tax deductions (such as mortgage interest deduction).
•Provided additional tax exemptions for families with children.
•Imposed a cap on the state and local tax (SALT deduction) deduction at $10,000, significantly affecting residents of high-tax states like New York and California.
•Facilitated some temporary tax relief for small businesses.
•Most tax cuts for individuals were temporary and will expire by 2025, while cuts for corporations were permanent.
The results and opinions on these cuts:
•Supporters claimed it revitalized the economy, increased growth rates, and encouraged companies to invest.
•Opponents argued that it increased the federal deficit (by over a trillion dollars), and most of the benefits went to the wealthy and large corporations.
•The long-term impact on the U.S. economy remains a topic of debate.