#TrumpTaxCuts The Trump Tax Cuts, officially known as the Tax Cuts and Jobs Act (TCJA), were enacted in 2017 and are set to expire at the end of 2025. Here's what's happening with the tax cuts:

Key Provisions

- *Individual Tax Cuts*: The TCJA reduced tax rates for individuals, doubled the standard deduction, and expanded family tax credits. However, it also limited deductions for state and local income taxes (SALT) and property taxes.

- *Corporate Tax Cuts*: The TCJA reduced the corporate tax rate from 35% to 21%, aiming to boost capital investment and economic growth.

- *Expiration*: Many provisions of the TCJA are set to expire on December 31, 2025, which could lead to a significant tax increase for individuals and businesses.

Potential Impact of Expiration

- *Tax Increase*: If the TCJA expires, the average taxpayer could face a 22% tax hike, with a typical family of four seeing a $1,700 increase.

- *Economic Impact*: The expiration could also lead to reduced economic growth, job losses, and decreased investment.¹

President Trump's Proposal

- *Extension*: President Trump has called for extending the TCJA permanently, along with additional tax cuts, such as exempting tips and Social Security benefits from taxation.

- *New Tariffs*: Trump's proposal also includes imposing new tariffs on imports, which could offset some of the economic benefits of the tax cuts.

Budget Reconciliation Process

- *Legislative Process*: The budget reconciliation process allows lawmakers to pass tax reforms with a simple majority in the Senate, bypassing the filibuster.

- *Deficit Impact*: Extending the TCJA could increase the budget deficit by $4.5 trillion over the next decade, according to the Tax Foundation.²