Tax Cuts

Extracted Attributes

• Common Name

  Trump Tax Cuts

• Description

  Most sweeping tax overhaul in decades

• Enacting Body

  United States Congress

• Official Name

  Tax Cuts and Jobs Act (TCJA)

• Effective Date

  2018-01-01

• Enactment Year

  2017

• Key Provisions

  Reduced tax rates for corporations and individuals, increased standard deduction and family tax credits, eliminated personal exemptions, limited state and local tax (SALT) deductions, limited mortgage interest deduction, reduced individual alternative minimum tax (AMT), eliminated corporate AMT, doubled estate tax exemption, reduced Affordable Care Act (ACA) individual mandate penalty to $0

• Impact on Federal Debt

  Increased

• Impact on Median Wages

  Modest

• Impact on Economic Growth

  Modest

• Impact on After-Tax Incomes

  Disproportionately benefited higher earners

• Impact on Corporate Investment

  Estimated 11% increase

• Estimated Deficit Increase (if extended)

  $4.6 trillion over 10 years

• Original Expiration Date (Business Tax Cuts)

  2028-12-31

• Original Expiration Date (Individual Tax Cuts)

  2025-12-31

Timeline

• The Tax Cuts and Jobs Act (TCJA) was enacted by the U.S. Congress. (Source: Summary)

  2017

• Most changes introduced by the TCJA went into effect. (Source: Wikipedia)

  2018-01-01

• Individual income tax cuts and other provisions were originally scheduled to expire. (Source: Wikipedia)

  2025

• Congress passed the One Big Beautiful Bill Act, extending most provisions of the TCJA beyond their original expiration dates. (Source: Wikipedia)

  2025

• Many business tax cuts were originally set to expire. (Source: Wikipedia)

  2028

Tax Cuts and Jobs Act

The Tax Cuts and Jobs Act, Pub. L. 115–97 (text) (PDF), is a congressional revenue act of the United States that amended the Internal Revenue Code of 1986. The legislation is commonly referred to in media as the Trump Tax Cuts; although the law is popularly referred to as the Tax Cuts and Jobs Act, this official short title was removed from the bill during the Senate amendment process, and therefore the law officially has no short title. Major elements of the changes include reducing tax rates for corporations and individuals, increasing the standard deduction and family tax credits, eliminating personal exemptions and making it less beneficial to itemize deductions, limiting deductions for state and local income taxes and property taxes, further limiting the mortgage interest deduction, reducing the alternative minimum tax for individuals and eliminating it for corporations, doubling the estate tax exemption, and reducing the penalty for violating the individual mandate of the Affordable Care Act (ACA) to $0. The New York Times has described the TCJA as "the most sweeping tax overhaul in decades". Most of the changes introduced by the bill went into effect on January 1, 2018, and did not affect 2017 taxes. Many tax cut provisions contained in the TCJA, notably including individual income tax cuts, such as the changes to the standard deduction in §63 of the IRC, were scheduled to expire in 2025 while many of the business tax cuts were set to expire in 2028. However, in 2025, Congress passed the One Big Beautiful Bill Act, which extends most provisions of the TCJA beyond their original expiration dates. Extending the cuts have caused economists across the political spectrum to worry it would boost inflationary pressures and worsen America's fiscal trajectory. The Congressional Budget Office estimates that extending the expiring provisions would add $4.6 trillion in deficits over 10 years. Studies show the TCJA increased the federal debt, as well as after-tax incomes disproportionately for the most affluent. It led to an estimated 11% increase in corporate investment, but its effects on economic growth and median wages were smaller than expected and modest at best.

Web Search Results

• How Tax Cuts Affect the Economy - Investopedia

  Tax cuts reduce government revenues and create a budget deficit or higher sovereign debt. The federal tax system relies on several taxes to generate revenue, including income tax and payroll tax. Proponents of tax cuts argue that cuts increase an individual or family's disposable income, spur spending, and help grow the economy. Critics claim that tax cuts only benefit the wealthy and reduce necessary government services for the lower-income bracket. [...] Tax cuts reduce government revenues and create either a budget deficit or increasedsovereign debt. Critics often argue that tax cuts benefit the rich at the expense of those with fewer resources, as services beneficial to those in a lower income bracket are cut. Proponents claim that cuts put money in consumers' pockets, resulting in spending increases, which grow the economy. Sponsored Build Wealth Without Worry [...] Since the 1980s, policies in countries like the United States have often been based on arguments that higher taxes on the wealthy have a negative influence on economic growth.5 Tax Cuts and the Economy ------------------------ Reducing marginal tax rates to spur economic growth is a commonly used policy with the notion that lower tax rates will give people more after-tax income that could be used to buy more goods and services.

• Budget Reconciliation: Tracking the 2025 Trump Tax Cuts

  The 2017 Trump Tax Cuts, known as the Tax Cuts and Jobs Act (TCJA), reduced average tax burdens for taxpayers across the income spectrum and temporarily simplified the tax filing process through structural reforms. It also boosted capital investment by reforming the corporate tax system and significantly improved the international tax system. [...] Extending the expiring 2017 TaxA tax is a mandatory payment or charge collected by local, state, and national governments from individuals or businesses to cover the costs of general government services, goods, and activities. Cuts and Jobs Act (TCJA) would decrease federal tax revenue by $4.5 trillion from 2025 through 2034. Long-run GDP would be 1.1 percent higher, offsetting $710 billion, or 16 percent, of the revenue losses. Long-run GNP (a measure of American incomes) would only [...] April 10, 2025, the House adopted the Senate’s amended version of the budget resolution, which allows $5.3 trillion in deficit-financed tax cuts (the combination of $3.8 trillion of tax cuts assumed to be “costless” under a current policy baseline plus $1.5 trillion in additional deficits permitted), deficit increases of $521 billion on defense and immigration spending, a minimum of $4 billion in spending cuts, and an increase in the debt limit of up to $5 trillion.

• How tax cuts help the economy and working families

  History shows that reducing taxes stimulates growth. The Tax Cuts and Jobs Act of 2017 is a prime example, leading to higher wages, increased job opportunities, and a surge in business investment. The law provided tax relief for working families and small businesses, allowing them to reinvest in their futures. Lower tax rates gave people the flexibility to save for the future, support their families, and contribute to their local communities. [...] # How tax cuts help the economy and working families Lower taxes have long been a driving force behind economic opportunity, entrepreneurship, and financial stability. The ability to keep more of what is earned fuels investment, innovation, and job creation. Throughout history, tax reforms have played a pivotal role in reigniting the American Dream by empowering individuals and businesses to take charge of their financial futures. [...] When taxes are lowered, the economy grows stronger. More resources remain in the hands of those who drive economic progress, like workers, entrepreneurs, and small businesses. This alignment with the principles of freedom and opportunity fosters a thriving marketplace where prosperity is not just an ideal but a reality.

• 2025 Tax Cuts Tracker - Tax Policy Center

  PRIOR ESTIMATES AND ANALYSIS ---------------------------- Below are TPC estimates of revenue and distributional effects of various policies under discussion in the 2025 tax debate. ### Tax Cuts### Revenue Raisers Expiring TCJA provisions Business tax extenders State and local tax deduction Child tax credit Trump campaign proposals Clean energy tax breaks Tariffs Other payfors TAX CUTS ------------ ### Expiring TCJA Provisions [...] The following TCJA provisions are set to expire after 2025. Lower statutory income tax rates for almost all income levels Near doubling of the standard deduction, repeal of personal exemptions, and lower value of several itemized deductions, including those for: State and local taxes (SALT) Mortgage interest Increase in the child tax credit More generous alternative minimum tax Deduction for pass-through business income Related TPC research [...] House and Senate Republicans are seeking to enact President Donald Trump’s tax agenda, which includes: extending the expiring pieces of the 2017Tax Cuts and Jobs Act(TCJA); restoring TCJA business tax breaks that are phasing out or expired; and enacting campaign proposals to exempt from federal income taxes tips, overtime pay, and Social Security benefits.

• New tax laws 2025: Tax brackets and deductions - U.S. Bank

  The “unknown” changes are where things could get interesting. Several provisions put in place as part of the 2017 Tax Cuts and Jobs Act (TCJA) are set to expire at the end of 2025. Current rules set to expire include: Standard deduction amounts Individual income tax rates Caps on state and local tax (SALT) deductions Deductions for small business owners Limits on estate tax exemptions [...] $0 to $11,925 $0 to $23,850 $0 to $17,000 12% $11,925 to $48,475 $23,850 to $96,950 $17,00 to $64,850 22% $48,475 to $103,350 $96,950 to $206,700 $64,850 to $103,350 24% $103,350 to $197,300 $206,700 to $394,600 $103,350 to $197,300 32% $197,300 to $250,525 $394,600 to $501,050 $197,300 to $250,500 35% $250,525 to $626,350 $501,050 to $751,600 $250,500 to $626,350 37% $626,350 or more $751,600 or more $626,350 or more Source: Internal Revenue Service.