#TrumpTaxCuts

Key contents of Trump Tax Cuts:

• Reduction of personal income tax:

• Lowering tax rates for most income groups (for example, the highest rate reduced from 39.6% to 37%).

• Increasing the standard deduction.

• Reducing or limiting certain other tax deductions (such as estate tax, state tax).

• Reduction of taxes for businesses:

• Federal corporate income tax rate reduced from 35% to 21%.

• Additional incentives for small and medium-sized enterprises.

• Encouraging investment:

• Policy for faster depreciation of assets.

• Investment incentives in low-income areas (Opportunity Zones).

• Temporary and long-term impacts:

• Most personal tax cuts will expire in 2025 (unless extended).

• Corporate tax cuts are permanent (no expiration).

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Actual impact of Trump Tax Cuts:

• Short-term economy:

• U.S. economic growth accelerated in 2018.

• Unemployment rate decreased.

• Impact on federal budget:

• Increased budget deficit due to reduced tax revenue.

• Income inequality:

• Studies show that most of the tax savings benefits go to wealthy individuals and large corporations.

• Politics:

• Strongly supported by the Republican Party.

• The Democratic Party criticizes this policy as “helping the rich” and increasing national debt.