#TrumpTaxCuts The **Trump tax cuts**, officially known as the **Tax Cuts and Jobs Act (TCJA) of 2017**, were a major overhaul of the U.S. tax code signed into law by President Donald Trump. Here’s a breakdown of its key aspects:
### **Key Provisions**
1. **Corporate Tax Cuts**
- Reduced the corporate tax rate from **35% to 21%** (permanent).
- Introdutered a **territorial tax system**, encouraging companies to bring overseas profits back to the U.S.
2. **Individual Tax Changes**
- Lowered income tax rates across most brackets (temporary, expiring in **2025** unless extended).
- Nearly **doubled the standard deduction** (e.g., $12,000 → $24,000 for married couples).
- Limited state and local tax (SALT) deductions to **$10,000**.
- Increased the child tax credit from $1,000 to **$2,000** per child.
3. **Pass-Through Business Deduction**
- Allowed owners of LLCs, S-corps, and sole proprietorships to deduct **20% of qualified business income**.
4. **Estate Tax Exemption**
- Doubled the exemption to **$11.2 million per individual** (adjusted for inflation).
### **Economic Impact & Debate**
- **Supporters** argue it boosted economic growth, increased wages, and brought corporate investment back to the U.S.
- **Critics** say it disproportionately benefited corporations and the wealthy while increasing the **national debt** by an estimated **$1.9 trillion** over a decade.
- The tax cuts did contribute to **higher stock buybacks** and corporate profits but had mixed effects on middle-class wage growth.
### **Current Status (2024)**
- Many **individual tax cuts expire in 2025**, setting up a major political battle over extensions.
- Biden has proposed raising corporate taxes and taxes on high earners but keeping cuts for households earning under **$400,000**.
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