what is (Trump Tax Cuts) ?
The Trump Tax Cuts refers to the Tax Cuts and Jobs Act (TCJA) signed into law by President Donald Trump in December 2017. It was the most significant overhaul of the U.S. tax code in decades. Here’s a summary of its key features:
Key Provisions:
Corporate Taxes:
The corporate tax rate was cut from 35% to 21% permanently.
Introduced a partial territorial tax system, reducing taxes on foreign income.
Individual Taxes (through 2025):
Lowered income tax rates across most brackets.
Doubled the standard deduction and increased the child tax credit.
Capped the state and local tax (SALT) deduction at $10,000.
Limited the mortgage interest deduction.
Removed the individual mandate penalty under the Affordable Care Act.
Business and Investment:
Allowed 100% expensing of certain capital investments (temporary).
Created a 20% deduction for pass-through businesses.
Impact:
Short-term economic boost in 2018–2019.
Corporate earnings and stock buybacks surged.
Critics argue it increased the national deficit and disproportionately benefited the wealthy.
Individual tax cuts are set to expire in 2025, unless renewed.👍