#TrumpTaxCuts

The tax cuts introduced by President Donald Trump in 2017 under the Tax Cuts and Jobs Act (TCJA) brought significant reforms to corporate and individual tax rates. The TCJA lowered the corporate rate from 35% to 21% and the top individual rate from 39.6% to 37%, as well as doubling the standard deduction and eliminating several itemized deductions. As a result, after-tax income surged significantly for the top 1% of earners, while the lower groups experienced a modest increase. This policy spurred capital investment but added to the federal deficit by trillions of dollars. As the benefits are set to expire in 2025, a debate has emerged between fiscal stability and ongoing economic stimulation.