#TrumpTaxCuts The Trump Tax Cuts, officially known as the Tax Cuts and Jobs Act (TCJA), were enacted in 2017 and are set to expire soon. Here's what you need to know:
Key Provisions
- *Individual Income Tax Cuts*: The TCJA reduced tax rates for individuals, nearly doubling the standard deduction and family tax credits. However, it also limited deductions for state and local income taxes (SALT) and property taxes.
- *Corporate Tax Cuts*: The TCJA reduced the corporate tax rate and improved the international tax system, boosting capital investment by 11%.
- *Expiration Dates*: Most individual tax cuts expire in 2025, while business tax cuts expire in 2028.
Economic Impact
- *Economic Growth*: Extending the TCJA would increase long-run GDP by 1.1% and create 847,000 full-time equivalent jobs.
- *Revenue Loss*: Permanently extending the TCJA would decrease federal tax revenue by $4.5 trillion from 2025 to 2034.
- *Debt and Deficits*: The Congressional Budget Office estimates that extending the expiring provisions would add $4.6 trillion in deficits over 10 years ¹ ².
Proposed Extensions and Changes
- *President Trump's Plan*: Trump has called for permanent extension of the TCJA, additional tax cuts, and new tariffs on imports.
- *Budget Reconciliation*: Lawmakers are using the budget reconciliation process to enact new tax cuts, with the House and Senate proposing different budget resolutions ¹.