#TrumpTaxCuts Key Findings

Extending the expiring 2017 Tax Cuts and Jobs Act (TCJA) would decrease federal tax revenue by $4.5 trillion from 2025 through 2034. Long-run GDP would be 1.1 percent higher, offsetting $710 billion, or 16 percent, of the revenue losses. Long-run GNP (a measure of American incomes) would only rise by 0.4 percent, as some of the benefits of the tax cuts and larger economy go to foreigners in the form of higher interest payments on the debt.

President Trump has called for permanent extension of the 2017 tax cuts, additional policies— including no taxes on tips, overtime pay, and Social Security benefits for retirees—as well as creation of a deduction for auto loan interest for American made cars. He has also promised higher taxes on US imports through a series of new tariffs.

Lawmakers will use the budget reconciliation process to enact new tax cuts. Reconciliation is a fast-track option that overcomes the Senate filibuster and can be used to enact tax, spending, and debt limit changes outlined in a budget resolution with specified targets or limits for deficit changes within the budget window.