#TrumpTaxCuts
The **Trump tax cuts**, officially known as the **Tax Cuts and Jobs Act (TCJA) of 2017**, were a major overhaul of the U.S. tax code signed into law by President Donald Trump. Here’s a breakdown of key aspects:
### **Key Provisions:**
1. **Corporate Tax Cuts**
- Reduced the corporate tax rate from **35% to 21%** (permanent).
- Introduced a **territorial tax system**, encouraging companies to repatriate overseas profits at lower rates.
2. **Individual Tax Changes**
- Lowered individual income tax rates across most brackets (temporary, expiring in **2025** unless extended).
- Nearly doubled the **standard deduction** (e.g., $12,000 → $24,000 for married couples).
- Limited **state and local tax (SALT) deductions** to $10,000.
- Increased the **Child Tax Credit** from $1,000 to $2,000 per child.
3. **Pass-Through Business Deduction**
- Allowed certain businesses (S-corps, LLCs, sole proprietorships) to deduct **up to 20% of qualified income**.
4. **Estate Tax Exemption**
- Doubled the threshold for estate taxes (to ~$11 million per individual, ~$22 million for couples).
### **Economic Impact & Controversy**
- **Supporters** argue it boosted economic growth, stock markets, and business investment.
- **Critics** say it disproportionately benefited corporations and the wealthy while increasing the **national debt** (estimated to add **$1.5–$2 trillion** over a decade).
- Studies show mixed results on whether it significantly raised wages or mostly fueled stock buybacks.
### **Current Status (2024)**
- Most **individual tax cuts expire in 2025**, setting up a major political battle over extensions.
- Biden has proposed raising corporate taxes and taxes on high earners but keeping cuts for households earning under $400K.
