#TrumpTaxCuts The Trump Tax Cuts, officially known as the Tax Cuts and Jobs Act (TCJA), was a significant overhaul of the US tax system. Here are some key points about the tax cuts:

- *Individual Income Tax Changes:*

- *Tax Brackets:* The TCJA changed the income level of individual tax brackets, lowering tax rates for most brackets. The number of brackets remained at seven, but the income ranges were adjusted.

- *Standard Deduction:* The standard deduction nearly doubled, from $12,700 to $24,000 for married couples, and from $6,350 to $12,000 for single filers.

- *Child Tax Credit:* The child tax credit was doubled from $1,000 to $2,000, with $1,400 being refundable.

- *Business Tax Changes:*

- *Corporate Tax Rate:* The corporate tax rate was reduced from a tiered system ranging from 15% to 39% to a flat 21%.

- *Territorial Tax System:* The TCJA shifted the US to a territorial tax system, where corporations are taxed based on where they're established, rather than on global income.

- *Other Provisions:*

- *Estate Tax:* The estate tax exemption was doubled to $11.2 million for individuals and $22.4 million for married couples.

- *State and Local Tax Deduction:* The deduction for state and local income tax, sales tax, and property taxes was capped at $10,000.

- *Mortgage Interest Deduction:* The mortgage interest deduction for newly purchased homes was lowered to $750,000.

The TCJA took effect on January 1, 2018, and most individual tax cuts are set to expire in 2025, while business tax cuts expire in 2028. Studies show the TCJA increased the federal debt and after-tax incomes for the affluent, with modest effects on economic growth and median wages.¹