#TrumpTaxCuts

Donald Trump's proposed tax plan includes several key provisions to reduce US federal income tax.

- *Individual Tax Cuts*:

- *Extension of TCJA Provisions*: Make current lower tax rates permanent, with the top rate remaining at 37%.

- *Increased Standard Deduction*: Nearly double the standard deduction to $15,000 for single filers and $30,000 for married couples filing jointly.

- *Retention of Child Tax Credit*: Maintain the existing $2,000 Child Tax Credit.

- *Elimination of Taxes on Social Security Benefits*: Remove federal taxes on Social Security income.

- *Tax Exemptions for Tipped Income and Overtime Pay*: Eliminate taxes on tipped income and overtime pay.

- *Business Tax Cuts*:

- *Reduced Corporate Tax Rate*: Lower the corporate tax rate from 21% to 20%, with an even lower rate of 15% for US manufacturers.

- *Domestic Production Activities Deduction*: Potential reinstatement of this deduction to encourage investment in domestic production.

- *Potential Impact*:

- *Middle-Class Families*: Continued savings through extended TCJA provisions, increased standard deduction, and retained Child Tax Credit.

- *High-Income Earners*: Benefits from extended lower tax rates, deductions, and elimination of taxes on Social Security benefits.

- *Businesses*: Reduced corporate tax rates and potential reinstatement of deductions could encourage investment and growth.

However, critics argue that these tax cuts could increase the federal deficit by over $3.7 trillion within the next decade.