#TrumpTaxCuts

The TTC refer to the Tax Cuts and Jobs Act (TCJA), signed into law in December 2017 under President Donald Trump. This legislation marked the most sweeping reform of the U.S. tax code in over 30 years. The TCJA permanently lowered the corporate tax rate from 35% to 21% to boost U.S. business competitiveness and stimulate investment. It also reduced individual income tax rates, nearly doubled the standard deduction, expanded the child tax credit, and introduced a 20% deduction for certain pass-through businesses. However, it capped the state and local tax (SALT) deduction at $10,000 and eliminated personal exemptions. While proponents claimed the tax cuts would lead to economic growth, job creation, and wage increases, critics argued that the benefits favored corporations and wealthy individuals and widened income inequality. Additionally, the tax cuts significantly increased the federal deficit. Many of the individual tax provisions are set to expire after 2025, prompting ongoing political debate about whether to extend or revise them in future legislation.

Would you like a breakdown of how these cuts might impact different income groups?