#TrumpTaxCuts The "Trump Tax Cuts" typically refer to the Tax Cuts and Jobs Act (TCJA) which was signed into law by President Donald Trump on December 22, 2017. Here are some of the key features and impacts of the legislation:

Key Features:

1.Corporate Tax Rate Reduction The corporate tax rate was reduced from 35% to 21%, aiming to enhance U.S. competitiveness and encourage companies to invest domestically.

2.Individual Tax Rate Changes The act lowered tax rates across several income brackets and adjusted the tax brackets for individuals.

3.Increased Standard Deduction The standard deduction was nearly doubled, from $6,350 to $12,000 for individuals, and from $12,700 to $24,000 for married couples filing jointly.

4.Child Tax Credit Expansion The law increased the child tax credit from $1,000 to $2,000 per qualifying child and made it refundable for more taxpayers.

5.Limits on Deductions The TCJA capped the State and Local Tax (SALT) deduction at $10,000 and eliminated many other itemized deductions.

6.Immediate Expensing Businesses were allowed to immediately deduct the cost of certain capital investments (like equipment) rather than depreciating them over time.

7.Alternative Minimum Tax Adjustments**: The bill increased the exemption amounts for the Alternative Minimum Tax, thus reducing the number of taxpayers subjected to it.

8.Repeal of the Individual Mandate The penalty for not having health insurance under the Affordable Care Act was effectively eliminated.

Impacts:

-Economic Growth Proponents argue that the cuts stimulated economic growth, leading to increased investment and job creation.

-Federal Deficits Critics have raised concerns that the tax cuts contributed to larger federal deficits and increased the national debt.

-Income Inequality There are debates about who benefited most from the tax cuts, with critics arguing that wealthier individuals and corporations received significant advantages.