#TrumpTaxCuts The **Trump tax cuts** refer to the **Tax Cuts and Jobs Act (TCJA) of 2017**, the major tax reform legislation signed into law by former President Donald Trump. Here’s a breakdown of its key aspects:
### **Key Provisions of the Trump Tax Cuts**
1. **Corporate Tax Cuts**
- Reduced the corporate tax rate from **35% to 21%** (permanent change).
- Allowed immediate **full expensing of capital investments** (phased out after 2022).
2. **Individual Tax Changes** (mostly temporary, expiring after **2025**)
- Lowered individual income tax rates across most brackets.
- Nearly doubled the **standard deduction** (to $12,000 single / $24,000 married).
- Limited **state and local tax (SALT) deductions** to $10,000.
- Increased the **Child Tax Credit** from $1,000 to $2,000 per child.
- Eliminated the **individual mandate penalty** for not having health insurance (part of Obamacare).
3. **Pass-Through Business Deduction**
- Created a **20% deduction** for qualified business income from pass-through entities (e.g., LLCs, S-corps).
4. **Estate Tax Exemption Increase**
- Doubled the exemption to **$11.18 million per individual** (adjusted for inflation; $13.61M in 2024).
### **Economic Impact & Criticism**
- **Supporters** argue it boosted economic growth, increased wages, and brought back corporate investment.
- **Critics** say it disproportionately benefited the wealthy and corporations while increasing the **federal deficit** by about **$1.9 trillion** over a decade (per CBO estimates).
### **Future of the Trump Tax Cuts**
- Most **individual provisions expire after 2025**, setting up a major political battle over whether to extend them.
- Democrats generally want to **roll back cuts for high earners**, while Republicans aim to **make them permanent**.