#TrumpTaxCuts Donald Trump's tax cut proposals include ¹ ²:

- *Extending the 2017 Tax Cuts and Jobs Act (TCJA)*: Making permanent the individual and business tax provisions, which would decrease federal tax revenue by $4.5 trillion from 2025 to 2034. This would increase long-run GDP by 1.1% and raise after-tax incomes by 2.9% in 2026.

- *New Tax Exemptions*:

- *Tips*: Exempting tips from income taxes, which would have a muted impact on long-run economic growth.

- *Social Security Benefits*: Exempting Social Security benefits from income taxes.

- *Overtime Pay*: Exempting overtime pay from income taxes.

- *Other Proposals*:

- *State and Local Tax (SALT) Deduction*: Restoring the SALT deduction.

- *Corporate Tax Rate*: Reducing the corporate tax rate for domestic production to 15%.

- *Auto Loan Interest*: Creating a deduction for auto loan interest for American-made cars.

*Potential Impact*:

- *Economic Growth*: Trump's tax proposals could increase long-run GDP by 0.8% and wages by 0.8%, with 597,000 new full-time equivalent jobs.

- *Tariffs*: However, his proposed tariffs could offset more than two-thirds of the long-run economic benefit of his tax cuts, potentially harming the economy.

- *Budget Deficit*: The tax cuts could increase the 10-year budget deficit by $3 trillion conventionally and $2.5 trillion dynamically ¹.