#TrumpTaxCuts

The Tax Cuts and Jobs Act (TCJA), also known as “Trump Tax Cuts,” is a comprehensive tax legislation signed by President Donald Trump in December 2017. This law is considered the largest tax reform in the United States in over three decades.

⚙️ Key Features of the Law

• Corporate Tax Rate Reduction: The corporate income tax rate was reduced from 35% to 21%, aimed at boosting investment and economic growth.

• Changes to Individual Taxes: Included an increase in the standard deduction, expansion of the child tax credit, and reduction of income tax rates, along with the elimination of certain personal exemptions.

• Limitation on State and Local Tax Deductions: The deduction for state and local taxes (SALT) was capped at $10,000, which particularly impacted taxpayers in high-tax states.

• Elimination of the Corporate Alternative Minimum Tax: This tax was repealed to simplify the corporate tax system.

📊 Economic and Financial Impacts

• Impact on the Federal Deficit: The Joint Committee on Taxation estimated that the law would increase the federal deficit by $1.5 trillion over ten years, with other projections suggesting an increase of up to $4.5 trillion if extended.