#TrumpTaxCuts The Trump Tax Cuts, officially known as the Tax Cuts and Jobs Act (TCJA), were a major overhaul of the US tax code in 2017. Here are some key aspects ¹:

- *Corporate Tax Rate Reduction*: The corporate tax rate was lowered from 35% to 21%.

- *Individual Tax Brackets*: Tax rates were adjusted, and standard deductions were increased. However, some provisions are set to expire in 2025, which could lead to tax increases for 62% of taxpayers.

- *Pass-Through Business Income*: New deductions were introduced for certain business types.

- *Tariffs*: President Trump has proposed new tariffs, which could offset some benefits of the tax cuts. Estimated tariffs and potential foreign retaliation might together offset more than two-thirds of the long-run economic benefit of his proposed tax cuts.

Economic Impact

- *GDP Growth*: Extending the TCJA could increase long-run GDP by 1.1%, offsetting $710 billion of the $4.5 trillion revenue loss.

- *Job Creation*: The tax cuts could lead to 847,000 new full-time equivalent jobs.

- *Budget Deficit*: Extending the TCJA could add $4.5 trillion to the budget deficit over 10 years.

Current Developments

- *Budget Reconciliation*: Lawmakers are using the budget reconciliation process to enact new tax cuts, allowing for $5.3 trillion in deficit-financed tax cuts.

- *Proposed Changes*: President Trump has called for permanence for the 2017 tax law, additional policies like no taxes on tips and Social Security benefits, and creation of a deduction for auto loan interest for American-made cars ².