#TrumpTaxCuts The Trump Tax Cuts, officially known as the Tax Cuts and Jobs Act (TCJA), was signed into law by President Donald Trump on December 22, 2017. This sweeping tax overhaul included several key provisions ¹:
- *Individual Income Tax Changes*:
- *Tax Bracket Adjustments*: Seven tax brackets with reduced rates, ranging from 10% to 37%
- *Standard Deduction Increase*: Nearly doubled to $24,000 for married couples and $12,000 for single filers
- *Child Tax Credit Expansion*: Doubled to $2,000 per child, with $1,400 being refundable
- *State and Local Tax Deduction Limit*: Capped at $10,000
- *Corporate Tax Changes*:
- *Flat Corporate Tax Rate*: Reduced to 21%
- *Territorial Tax System*: Shift from global to territorial tax system, taxing only income earned within the US
- *One-time Repatriation Tax*: 8% or 15.5% tax on profits in overseas subsidiaries
- *Other Provisions*:
- *Estate Tax Exemption*: Doubled to $11.2 million for individuals and $22.4 million for married couples
- *Alternative Minimum Tax*: Increased exemption levels for individuals and eliminated for corporations
The TCJA's individual tax cuts are set to expire in 2025, while corporate tax cuts will expire in 2028. Extending these cuts could add $4.6 trillion in deficits over 10 years, according to the Congressional Budget Office. Studies show the TCJA increased federal debt and after-tax incomes for the affluent, with modest effects on economic growth and median wages.