#TrumpTaxCuts The Trump Tax Cuts, officially known as the Tax Cuts and Jobs Act (TCJA), were enacted in 2017 and are set to expire at the end of 2025. Here's what's happening with the tax cuts:

Key Provisions

- *Individual Tax Cuts*: The TCJA reduced tax rates for individuals, doubled the standard deduction, and expanded family tax credits. However, it also limited deductions for state and local income taxes (SALT) and property taxes.

- *Corporate Tax Cuts*: The TCJA reduced the corporate tax rate and improved the international tax system, boosting capital investment.

- *Expiration*: Most provisions of the TCJA will expire on January 1, 2026, unless Congress acts to extend them.

Potential Impact of Expiration

- *Tax Increase*: If the TCJA expires, 62% of taxpayers could face a tax increase, with the average taxpayer seeing a 22% tax hike ($4 trillion).

- *Economic Impact*: The expiration could lead to a decrease in real GDP, wages, and employment.

President Trump's Proposal

- *Extension*: President Trump has called for permanent extension of the TCJA, as well as additional tax cuts, such as exempting tips and Social Security benefits from taxation.

- *Tariffs*: Trump has also proposed new tariffs, which could offset some of the economic benefits of the tax cuts.

Congressional Action

- *Budget Reconciliation*: Congress is using the budget reconciliation process to enact new tax cuts, with the House and Senate passing budget resolutions that allow for $5.3 trillion in deficit-financed tax cuts.

- *Deadline*: Lawmakers are working to pass a bill before the end of 2025 to avoid a significant tax increase for many Americans ¹ ².