#TrumpTaxCuts

Key Provisions of the Trump Tax Cuts**

1. **Corporate Tax Rate Cut**

- Reduced from **35% to 21%**, the largest corporate tax cut in U.S. history.

- Intended to boost business investment and competitiveness.

2. **Individual Tax Changes**

- Lowered individual income tax rates across most brackets (e.g., top rate fell from **39.6% to 37%**).

- Nearly doubled the **standard deduction** (to $12,000 for singles, $24,000 for married couples).

- Limited or eliminated some deductions (e.g., **SALT deduction** capped at $10,000).

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 Doubled**

- Increased from ~$5.5 million to **$11.2 million per individual** (adjusted for inflation).

5. **International Tax Changes**

- Shifted to a **territorial system**, exempting some foreign profits from U.S. taxes.

- Introduced a **minimum tax (GILTI)** on foreign earnings and a **one-time repatriation tax** on overseas cash.

6. **Expiration of Individual Provisions**

- Most individual tax cuts **expire after 2025**, while corporate cuts are permanent.

### **Arguments in Favor**

✅ **Boosted economic growth** (GDP grew at ~3% in 2018).

✅ **Record corporate profits & stock buybacks**.

✅ **Lower taxes for many middle-class families** (though benefits skewed toward higher earners).

### **Criticisms**

❌ **Increased federal deficit** (~$1.9 trillion over 10 years, per CBO).

❌ **Disproportionately benefited corporations & the wealthy**.

❌ **Complexity in pass-through rules & SALT cap hurt some taxpayers**.

### **Current Status (2025)**

- **Individual tax cuts expire in 2026** unless extended by Congress.

- **Biden has proposed raising corporate taxes** but keeping some middle-class cuts.

- **2024 election could determine future of TCJA provisions**.

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