How Trump's Tax Reform Plan Affects You
President Donald Trump signed the Tax Cuts and Jobs Act (TCJA) on Dec. 22, 2017.1 It cut individual income tax rates, doubled the standard deduction, and eliminated personal exemptions from the tax code. The top individual tax rate dropped from 39.6% to 37%, and numerous itemized deductions were eliminated or affected as well.2 The Act also cut the corporate tax rate from 35% to 21% beginning in 2018. The corporate cuts are permanent, while the individual changes expire at the end of 2025 unless Congress acts to renew some or all of the provisions of the TCJA. How It Affects You The TCJA is complex and its various terms affect each family differently depending on their personal situations: High-income earners: The Tax Foundation has indicated that those who earn more than 95% of the population will receive a 2.2% increase in after-tax income. Those in the 20% to 80% range would receive a 1.7% increase.3 The Tax Policy Center said those in the bottom 20% would only rece...