#TrumpTaxCuts

The Trump Tax Cuts, officially known as the Tax Cuts and Jobs Act (TCJA), were 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 Brackets*: Seven income tax brackets remain, but with lower rates and changed income ranges. For example, the corporate tax rate was reduced from a tiered system (15-39%) to a flat 21%.

- *Standard Deduction*: Nearly doubled to $24,000 for married couples and $12,000 for single filers.

- *Child Tax Credit*: Doubled from $1,000 to $2,000 per child.

- *State and Local Tax (SALT) Deduction*: Capped at $10,000.

- *Business Tax Changes*:

- *Corporate Tax Rate*: Reduced to a flat 21%.

- *Territorial Tax System*: Shifted from a global to a territorial tax system, taxing corporations only on income earned within the US.

- *Other Provisions*:

- *Estate Tax*: Exemption increased to $11.2 million for individuals and $22.4 million for married couples.

- *Alternative Minimum Tax (AMT)*: Exemption levels increased, reducing the number of people subject to AMT.

*Impact and Expiration*:

- The TCJA's individual tax cuts are set to expire in 2025, while business tax cuts expire in 2028.

- Extending these cuts could add $4.6 trillion in deficits over 10 years, potentially boosting inflationary pressures and worsening America's fiscal trajectory.

- Studies show the TCJA increased federal debt and after-tax incomes for the affluent, with modest effects on economic growth and median wages.