#TrumpTaxCuts Donald Trump's tax cuts, also known as the Tax Cuts and Jobs Act (TCJA), were enacted in 2017 and are set to expire in 2025. Here's a breakdown of the key points ¹ ²:

- *Tax Cuts Extension*: Extending the TCJA would decrease federal tax revenue by $4.5 trillion from 2025 to 2034. Long-run GDP would increase by 1.1%, offsetting $710 billion of the revenue losses.

- *Proposed Changes*: Trump has called for permanent extension of the 2017 tax cuts, additional policies like no taxes on tips, overtime pay, and Social Security benefits for retirees, and creation of a deduction for auto loan interest for American-made cars.

- *Tariffs*: Trump's proposed tariffs would offset more than two-thirds of the long-run economic benefit of his tax cuts, potentially harming the economy.

- *Budget Reconciliation*: Lawmakers will use the budget reconciliation process to enact new tax cuts, allowing for $5.3 trillion in deficit-financed tax cuts.

- *Economic Impact*: The TCJA has increased after-tax incomes for the affluent, led to an estimated 11% increase in corporate investment, but had modest effects on economic growth and median wages.

*Key Provisions of TCJA:*

- *Individual Income Tax*: Reduced tax rates for individuals, increased standard deduction, and family tax credits.

- *Business Tax*: Reduced corporate tax rate, improved international tax system, and boosted capital investment.

- *Expiration*: Many individual tax cuts expire in 2025, while business tax cuts expire in 2028.

The potential extension or modification of these tax cuts may significantly impact the US economy, budget, and tax system.