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How Trump's big bill could affect your taxes

4 1
22.05.2025

President Trump’s bill to cut taxes and spending centers on an extension of his previous round of tax cuts, which Republicans slated for expiration at the end of this year back in 2017.

As such, it will preserve the status quo on many big parts of the code so that taxpayers won’t see any change in things like the amount of money the government takes out of their paychecks.

Other tax cuts in the legislation now moving through Congress will be brand new, though most of the new additions are scheduled to end after a few years.

Here’s a look at some of the big-ticket items in the latest round of GOP tax cuts.

Personal income tax rates will stay the same

Trump’s 2017 tax law cut many individual income tax rates, and those would continue into the future through the current legislation.

Under current law and moving up the income spectrum, marginal rates are 10 percent, 12 percent, 22 percent, 24 percent, 32 percent, 35 percent, and 37 percent. The new GOP law will lock those rates in place.

The extension of those rates will reduce federal revenues by $2.2 trillion through 2034, according to the Joint Committee on Taxation (JCT).

If they were allowed to lapse, rates would change to 10 percent, 15 percent, 25 percent, 28 percent, 33 percent, 35 percent, and 39.6 percent. Only the 10-percent and 35-percent rates were left alone by the 2017 tax cuts.

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© The Hill