#TrumptaxCuts The Trump tax cuts, officially known as the Tax Cuts and Jobs Act (TCJA), were enacted in December 2017 and have had significant effects on the US economy. Here are some key aspects:

Key Provisions

- *Individual Income Tax*: The TCJA reduced tax rates across seven brackets, nearly doubled the standard deduction, and limited state and local tax (SALT) deductions to $10,000.

- *Corporate Tax*: The corporate tax rate was reduced from a tiered system to a flat 21%, and the US shifted from a global to a territorial tax system.

- *Estate Tax*: The estate tax exemption was doubled to $11.2 million for individuals and $22.4 million for married couples.

Economic Impact

- *GDP Growth*: The TCJA is estimated to increase long-run GDP by 1.1%, offsetting about 16% of the revenue losses.

- *Investment*: Corporate investment increased by an estimated 11%, but the effects on economic growth and median wages were modest.

- *Debt*: The TCJA increased the federal debt, with the Congressional Budget Office estimating a $4.6 trillion increase in deficits over 10 years if the expiring provisions are extended.

Expiration and Extension

- *Individual Tax Cuts*: Most individual tax cuts are set to expire after 2025, which could lead to tax increases for many taxpayers.

- *Corporate Tax Cuts*: The corporate tax changes are permanent.

- *Proposed Extension*: President Trump has called for permanence for the 2017 tax law, which would decrease federal tax revenue by $4.5 trillion from 2025 through 2034 ¹ ².