#TrumptaxCuts #XRPETFs What are the Trump tax cuts?
The Trump tax cuts refer to the Tax Cuts and Jobs Act (TCJA) that President Donald Trump signed in December 2017. It was the most significant change to the U.S. tax code in decades. Here is a summary of its key features:
Key Terms:
Corporate Tax:
The corporate tax rate was permanently reduced from 35% to 21%.
Introduced a partial territorial tax system, reduced tax on foreign income.
Individual Tax (through 2025):
Lower income tax rates in most brackets.
Doubled the standard deduction and increased the child tax credit.
Limited the state and local tax (SALT) deduction to $10,000.
Limit the mortgage interest deduction.
Removed the individual mandate penalty under the Affordable Care Act.
Business and Investment:
Allows 100% expensing of certain investments (temporary).
Created a 20% deduction for pass-through businesses.
Impact:
Short-term economic boost in 2018-2019.
Increase in corporate income and stock buybacks.
Critics argue that it increased the national deficit and disproportionately benefited the wealthy.
The expiration of individual tax deductions is set for 2025 unless renewed.👍
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