#TrumptaxCuts

The Tax Cuts and Jobs Act (TCJA), commonly referred to as the Trump tax cuts, 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 income 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, with $1,400 being refundable

- *State and Local Tax (SALT) Deduction Limitation*: Capped at $10,000

- *Corporate Tax Changes*:

- *Flat Corporate Tax Rate*: 21%, replacing the previous tiered system

- *Territorial Tax System*: Corporations pay tax rates of the country where they're established, rather than the U.S. rate

- *Other Provisions*:

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

- *Alternative Minimum Tax (AMT) Changes*: Increased exemption levels for individuals, eliminated for corporations

The TCJA's individual tax cuts are set to expire in 2025, while corporate tax cuts expire in 2028. Economists have expressed concerns that extending these cuts could boost inflationary pressures and worsen America's fiscal trajectory.