#TrumpTaxCuts

Donald Trump's tax cuts, also known as the Tax Cuts and Jobs Act (TCJA), were enacted in 2017 and have been a significant part of his economic policy. Here's a breakdown of the key aspects:

# Key Provisions

- *Individual Income Tax Cuts*: The TCJA reduced tax rates for individuals, nearly doubling the standard deduction and increasing family tax credits. However, it also limited deductions for state and local income taxes and property taxes.

- *Corporate Tax Cuts*: The corporate tax rate was reduced, aiming to boost capital investment and economic growth.

- *Expiration and Extension*: Many individual tax cuts are set to expire in 2025, while business tax cuts expire in 2028. Extending these cuts would decrease federal tax revenue by $4.5 trillion from 2025 to 2034.

# Economic Impact

- *GDP Growth*: Extending the TCJA would increase long-run GDP by 1.1%, offsetting about 16% of the revenue losses.

- *Job Creation*: The tax cuts are estimated to create around 847,000 full-time equivalent jobs.

- *Inflationary Pressures*: Economists worry that extending the expiring provisions would boost inflationary pressures and worsen America's fiscal trajectory.

# Trump's Latest Proposals

- *Permanence for TCJA*: Trump has called for permanent extension of the 2017 tax law.

- *New Tax Exemptions*: He proposes exempting tips, overtime pay, and Social Security benefits for retirees from taxes.

- *Tariffs*: Trump also plans to impose higher taxes on US imports through new tariffs, which could offset the economic benefits of the tax cuts.¹ ²