#TrumpTaxCuts The Trump Tax Cuts refer primarily to the Tax Cuts and Jobs Act (TCJA) of 2017, signed into law by President Donald Trump. This legislation was the most significant overhaul of the U.S. tax code in decades, impacting individuals, businesses, and estates. Below is a concise overview of the TCJA, its key provisions, economic impacts, and the current debate surrounding its extension, particularly in the context of 2025 when many provisions are set to expire.

Key Provisions of the TCJA (2017)

Individual Tax Cuts (Expiring End of 2025):

Lowered Income Tax Rates: Reduced marginal tax rates across income brackets (e.g., top rate dropped from 39.6% to 37%).

Increased Standard Deduction: Nearly doubled to $12,000 for individuals and $24,000 for married couples (2025: $14,600/$29,200).

Eliminated Personal Exemptions: Previously $4,050 per person, removed to offset standard deduction increase.

Child Tax Credit: Increased from $1,000 to $2,000 per child, with up to $1,400 refundable (2024: $1,700 refundable).

SALT Deduction Cap: Limited state and local tax deductions to $10,000, impacting high-tax state residents.

Alternative Minimum Tax (AMT): Raised exemption amounts, reducing AMT applicability.

Mortgage Interest Deduction: Capped at $750,000 of debt for new mortgages (down from $1 million).

Business Tax Cuts:

Corporate Tax Rate: Permanently reduced from 35% to 21%.

Pass-Through Deduction (Section 199A): 20% deduction for certain business income (e.g., sole proprietorships, partnerships), expiring 2025.

Bonus Depreciation: Allowed 100% immediate expensing for certain assets (phasing out; 40% in 2025).

R&D Amortization: Requires R&D expenses to be amortized over five years (started 2022, ongoing unless repealed).

Estate Tax (Expiring End of 2025):

Doubled exemption to $11.18 million per individual in 2018 (2025: ~$13.6 million; reverts to ~$7 million in 2026).

Permanent Changes:

Repealed the Affordable Care Act’s individual mandate penalty

Maintained corporate tax rate cut and certain international tax reforms.

(DYOR)