#TrumpTaxCuts

Will Trump and Congress extend the TCJA tax cuts?

The TCJA, passed by a Republican-majority Congress in 2017, represented the most significant tax reform in nearly three decades. The law reduced the corporate tax rate to 21%, limited state and local tax (SALT) deductions to $10,000, doubled standard deductions, and expanded the child tax credit.

The goal of the $1.5 trillion tax reform bill was to stimulate economic growth, reduce regulations, and create a more favorable environment for businesses in the United States.

The TCJA was passed as a reconciliation bill, meaning that the bill bypassed typical filibuster rules and was approved by a Republican-majority Senate with a simple majority of 51 votes. However, many provisions were set to expire to reduce costs and comply with the Byrd Rule, which prohibits reconciliation bills from increasing the federal deficit beyond a 10-year budget period or making changes to Social Security.