#TrumpTaxCuts

The Trump tax cut, officially known as the Tax Cuts and Jobs Act (TCJA), was signed into law by President Donald Trump on December 22, 2017. This sweeping tax overhaul included several key provisions ¹:

- *Individual Income Tax Changes*:

- *Tax Bracket Adjustments*: Seven tax brackets with reduced rates, ranging from 10% to 37%.

- *Standard Deduction Increase*: Nearly doubled to $24,000 for married couples and $12,000 for single filers.

- *Child Tax Credit Expansion*: Doubled to $2,000 per child, with $1,400 being refundable.

- *Business Tax Changes*:

- *Corporate Tax Rate Reduction*: Flat 21% corporate tax rate, down from a tiered system with rates up to 35%.

- *Territorial Tax System*: Shifted the US corporate tax system from global to territorial, taxing only income earned within the US.

- *Other Provisions*:

- *Estate Tax Exemption Increase*: Doubled to $11.2 million for individuals and $22.4 million for married couples.

- *State and Local Tax Deduction Limitation*: Capped at $10,000 for state and local income, sales, and property taxes.

- *Alternative Minimum Tax Adjustment*: Increased exemption levels for individuals and eliminated for corporations.

The TCJA's individual tax cuts are set to expire in 2025, while business tax cuts expire in 2028. Extending these cuts could add $4.6 trillion in deficits over 10 years, according to the Congressional Budget Office. Studies show the TCJA increased federal debt and after-tax incomes for the affluent, with modest effects on economic growth and median wages.