The Trump Tax Cuts, officially the Tax Cuts and Jobs Act (TCJA) of 2017, was a major overhaul of the U.S. tax code, signed into law by President Donald Trump. It reduced individual income tax rates, doubled the standard deduction, and lowered the corporate tax rate to 21%. Many individual provisions are set to expire in 2025, prompting debates over extension. Proponents argue it boosted economic growth, increased wages, and benefited working-class families, with estimates suggesting a potential $4,000-$5,000 increase in median household take-home pay if extended. Critics claim it disproportionately favored the wealthy, added $1.9 trillion to the deficit, and failed to deliver promised trickle-down benefits. Trump’s 2025 proposals include making TCJA permanent, eliminating taxes on tips, overtime, and Social Security, and imposing tariffs to offset costs, though tariffs may negate economic gains. Extending TCJA could cost $4.5-$7.8 trillion over a decade.
