#TrumpTaxCuts

Donald Trump's proposed tax plan for 2025 includes several key provisions that could impact individuals and businesses. Here are some of the main points:

*Individual Tax Provisions*

- *Lower Tax Rates*: Extending the current lower tax rates, including the top rate of 37%, which was reduced from 39.6% under the Tax Cuts and Jobs Act (TCJA).

- *Increased Standard Deduction*: Nearly doubling the standard deduction to $15,000 for single filers and $30,000 for married couples filing jointly, simplifying tax filing and providing greater tax benefits to families.

- *Child Tax Credit*: Retaining the existing $2,000 Child Tax Credit, which can significantly lower tax bills for families with children.

- *No Taxes on Social Security Benefits*: Eliminating federal taxes on Social Security income, providing financial relief for retirees.

- *No Taxes on Tips and Overtime Pay*: Exempting tipped income and overtime pay from federal taxes, potentially increasing take-home pay for workers in industries like hospitality.¹

*Business Tax Provisions*

- *Reduced Corporate Tax Rate*: Lowering the corporate tax rate from 21% to 20%, with an even lower rate of 15% for US manufacturers, aiming to encourage domestic investment and job growth.

- *Domestic Production Activities Deduction*: Potentially reinstating this deduction to benefit businesses.

*Other Provisions*

- *Tariffs*: Implementing a universal 20% tariff on imported goods and a 60% tariff on goods from China, aiming to protect American industries but potentially leading to higher consumer prices.

- *Estate and Gift Tax Exemptions*: Increasing exemptions to benefit wealthy families looking to transfer large estates without incurring significant tax liabilities.

*Potential Impact*

- *Federal Deficit*: Extending these tax cuts could increase the federal deficit by over $3.7 trillion within the next decade, potentially leading to long-term economic challenges.

- *Economic Growth*: Some provisions, like permanent expensing for machinery and research, could promote long-run economic growth, while others, like ta