#TrumpTaxCuts The Trump Tax Cuts, officially known as the Tax Cuts and Jobs Act (TCJA), were enacted in 2017 and are set to expire soon. Here's what you need to know ¹:
- *Key Provisions:*
- Reduced tax rates for corporations and individuals
- Increased standard deduction and family tax credits
- Limited deductions for state and local income taxes and property taxes
- Doubled the estate tax exemption
- *Expiration:*
- Individual income tax cuts are scheduled to expire in 2025
- Business tax cuts are set to expire in 2028
- *Economic Impact:*
- Estimated to increase long-run GDP by 1.1% if extended
- Would offset $710 billion of the revenue losses
- However, economists worry that extending the cuts would boost inflationary pressures and worsen America's fiscal trajectory
President Trump has called for permanent extension of the 2017 tax cuts, as well as additional policies such as:
- *New Proposals:*
- No taxes on tips, overtime pay, and Social Security benefits for retirees
- Deduction for auto loan interest for American-made cars
- Higher taxes on US imports through new tariffs
The estimated cost of extending the TCJA would be $4.5 trillion from 2025 to 2034, with a potential increase in the budget deficit and interest costs ².
