#TrumpTaxCuts TAX CUTS and Economic Impact.

In the final days of April 2025, the U.S. Congress is rushing to finalize a new tax bill proposed by President Donald Trump, aimed at extending and expanding the provisions of the Tax Cuts and Jobs Act (TCJA) of 2017. The main goal is to make individual tax cuts permanent and add new incentives for businesses, particularly in the manufacturing sector and auto loans.

However, this plan faces many challenges. The estimated total cost reaches up to $4.5-5.8 trillion over the next 10 years, forcing the Republican party to propose spending cuts of around $2 trillion, mainly from Medicaid and green energy credits. This has caused internal divisions, as moderate lawmakers are concerned about the impact on low-income individuals and the environment.

Another point of contention is the adjustment of the state and local tax deduction (SALT), which significantly affects high-tax states like California and New York. Meanwhile, Democrats and the White House warn that extending the Trump Tax Cuts could trigger an "inflation bomb," increasing the cost of living and public debt.

Analysis from the Urban-Brookings Tax Policy Center shows that if the TCJA is extended, the top 5% of earners will receive nearly half of the benefits, while average earners will only see a reduction of about $1,000 per year.

The bill is expected to be presented to Congress in early June, with the goal of passing it before the Memorial Day holiday. However, with disagreements