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US History – 1945 to Present
Table of Contents
Unit 17 Overview: Trump Era: Populism and Foreign Policy
17.1 2016 Election and Rise of Populism
17.2 Domestic Policy: Tax Cuts and Immigration
17.3 Foreign Policy: "America First" and Trade Wars
17.4 COVID-19 Pandemic and Social Unrest

The 2017 tax reform slashed rates across the board, aiming to boost economic growth. It reduced individual and corporate taxes, doubled the standard deduction, and expanded child tax credits. However, it also raised concerns about long-term effects on national debt and inequality.

Trump's immigration policies emphasized border security and enforcement. He implemented travel bans, rescinded DACA, reduced refugee admissions, and pushed for a border wall. These actions sparked legal challenges and debates over discrimination, effectiveness, and humanitarian concerns.

Tax Policy and Reform

Provisions of 2017 tax reform

  • Reduced individual income tax rates across all tax brackets with the top rate lowered from 39.6% to 37%
  • Slashed corporate tax rate from 35% to 21% aimed to boost global competitiveness of U.S. businesses
  • Doubled the standard deduction to $12,000 for individuals and $24,000 for married couples filing jointly simplifying tax filing for many
  • Limited state and local tax (SALT) deduction to $10,000 impacting taxpayers in high-tax states (California, New York)
  • Expanded child tax credit from $1,000 to $2,000 per child providing additional relief for families
  • Doubled estate tax exemption to $11.2 million for individuals and $22.4 million for married couples reducing tax burden on wealthy estates
  • Short-term boost to economic growth and consumer spending but raised concerns about long-term effects on national debt and income inequality

Immigration Policy and Controversies

Trump's immigration restrictions

  • Emphasized border security and enforcement by increasing funding for Immigration and Customs Enforcement (ICE) and Customs and Border Protection (CBP)
  • Implemented travel ban (Executive Order 13769) initially targeting seven predominantly Muslim countries, later revised to include North Korea and Venezuela
  • Rescinded Deferred Action for Childhood Arrivals (DACA) program that protected undocumented immigrants brought to the U.S. as children
  • Reduced annual refugee admissions cap to historic low of 18,000 in FY 2020, lowest since Refugee Act of 1980
  • Introduced public charge rule making it harder for immigrants using public benefits (Medicaid, food stamps) to obtain green cards or visas

Travel ban controversy

  • Criticized as a "Muslim ban" due to targeting of predominantly Muslim countries raising concerns about religious discrimination
  • Faced legal challenges from states and advocacy groups arguing the ban was discriminatory and unconstitutional
  • Supreme Court ultimately upheld a revised version of the ban in Trump v. Hawaii (2018) ruling the President has broad authority over immigration and national security matters

Border wall debate

  • Building a wall along the U.S.-Mexico border was a central campaign promise of Donald Trump's 2016 presidential campaign to curb illegal immigration
  • Symbolically represented a hardline stance on immigration appealing to supporters who prioritized border security
  • Faced funding and construction challenges with difficulty securing Congressional appropriations and legal battles over use of emergency powers to divert funds
  • Criticized for questionable effectiveness in deterring illegal immigration and concerns about environmental impact and property rights along the border

Key Terms to Review (26)

National debt: National debt is the total amount of money that a government owes to creditors, which can include foreign governments, domestic investors, and financial institutions. This debt accumulates when a government borrows funds to cover budget deficits, often leading to complex economic discussions surrounding fiscal policy, taxation, and public spending.
Income inequality: Income inequality refers to the uneven distribution of income across various participants in an economy, often leading to significant disparities between different socioeconomic groups. This disparity impacts social mobility, economic stability, and overall quality of life, and can be exacerbated by policies that favor wealth accumulation among the affluent while neglecting lower-income individuals and families.
Deferred Action for Childhood Arrivals: Deferred Action for Childhood Arrivals (DACA) is a U.S. immigration policy that allows certain individuals who came to the United States as children and meet specific criteria to receive temporary protection from deportation. DACA not only provides a sense of security for these individuals but also enables them to apply for work permits, contributing to the economy and society. The policy has sparked significant debate regarding immigration reform and the balance between security and compassion in domestic policies.
U.S.-Mexico Border Wall: The U.S.-Mexico Border Wall is a series of physical barriers constructed along the United States-Mexico border aimed at preventing illegal immigration and enhancing border security. The wall has been a focal point in discussions about immigration policy, national security, and domestic spending, linking it to broader debates about tax cuts and the allocation of federal resources.
Public charge rule: The public charge rule is a policy that determines whether an immigrant seeking admission to the United States or applying for a green card can be denied based on their likelihood of becoming dependent on government assistance. This rule is significant in shaping immigration policy and affects the types of public benefits that immigrants can utilize without jeopardizing their immigration status.
Trump v. Hawaii: Trump v. Hawaii is a significant Supreme Court case decided in 2018 that upheld the third iteration of President Donald Trump's travel ban, which restricted entry into the United States from several predominantly Muslim countries. This decision highlighted issues of executive power and national security, intersecting deeply with matters of immigration policy and its implications for individuals affected by the ban.
Illegal immigration: Illegal immigration refers to the act of entering or residing in a country without the legal permission or authorization from the government. This can involve overstaying visas, crossing borders without documentation, or using false identification. In the context of domestic policies surrounding tax cuts and immigration, illegal immigration often intersects with discussions about labor markets, public services, and economic impacts on both state and federal levels.
Border security: Border security refers to the measures taken by a country to regulate and control its borders, aimed at preventing illegal immigration, trafficking, and ensuring national safety. This concept has become increasingly important in the context of domestic policy, especially regarding immigration laws and tax policies that affect funding for enforcement agencies.
DACA: DACA, or Deferred Action for Childhood Arrivals, is a United States immigration policy that was established in 2012. It provides temporary relief from deportation and work authorization to certain undocumented immigrants who came to the U.S. as children, often referred to as 'Dreamers.' The policy reflects broader discussions about immigration reform and the challenges faced by young immigrants navigating a complex legal landscape.
Refugee Act of 1980: The Refugee Act of 1980 was a significant piece of legislation in the United States that established a formal process for admitting refugees into the country. It aimed to provide protection to individuals fleeing persecution based on race, religion, nationality, political opinion, or membership in a particular social group. This act also redefined the criteria for refugee status and expanded the scope of U.S. humanitarian policy towards displaced individuals, reflecting a broader commitment to human rights and international obligations.
Refugee admissions cap: The refugee admissions cap is a limit set by the U.S. government on the number of refugees allowed to enter the country within a fiscal year. This cap reflects the administration's stance on immigration and humanitarian commitments, and it can significantly impact the overall refugee resettlement program. The cap is influenced by various factors, including international crises, domestic political considerations, and budgetary constraints.
Customs and Border Protection: Customs and Border Protection (CBP) is a federal agency under the Department of Homeland Security responsible for regulating and facilitating international trade, collecting import duties, and enforcing U.S. immigration laws. CBP plays a crucial role in securing the nation’s borders while also ensuring that legitimate trade and travel can proceed efficiently.
Child Tax Credit: The Child Tax Credit is a tax benefit provided to families with dependent children, designed to reduce the financial burden of raising children. It allows eligible families to receive a credit against their federal income tax liability, which can significantly lower the amount of tax owed or increase their refund. This credit plays a crucial role in domestic policy by promoting family support and providing relief to lower and middle-income households, especially during periods of economic challenge.
Executive Order 13769: Executive Order 13769, titled 'Protecting the Nation from Foreign Terrorist Entry into the United States', was signed by President Donald Trump on January 27, 2017. This order aimed to restrict immigration from seven predominantly Muslim countries and temporarily halt the U.S. refugee program, impacting discussions around national security and immigration policy.
Estate tax exemption: The estate tax exemption is a provision that allows individuals to pass a certain amount of wealth to their heirs without incurring federal estate taxes. This exemption is significant as it affects estate planning, wealth transfer, and financial strategies for families, particularly those with substantial assets. The threshold for this exemption can change due to legislative reforms, reflecting broader economic policies and tax strategies aimed at influencing domestic fiscal responsibilities.
Standard deduction: The standard deduction is a fixed dollar amount that reduces the income on which individuals are taxed, helping to simplify the tax filing process. It varies based on factors like filing status and age, allowing taxpayers to reduce their taxable income without needing to itemize their deductions. This term connects to domestic policies involving tax cuts, as changes to the standard deduction can directly impact the overall tax burden on individuals and families.
State and local tax deduction: The state and local tax deduction (SALT) allows taxpayers to deduct certain taxes paid to state and local governments from their federal taxable income. This deduction includes state income taxes, local income taxes, and property taxes, effectively reducing the overall tax burden for individuals residing in higher-tax states. The SALT deduction is often a point of contention in discussions about tax policy, particularly regarding its impact on taxpayers in different regions and its relationship to federal tax cuts.
Immigration and Customs Enforcement: Immigration and Customs Enforcement (ICE) is a federal agency under the Department of Homeland Security responsible for enforcing immigration laws and investigating customs violations. ICE plays a significant role in the enforcement of immigration policies, including detaining undocumented immigrants and carrying out deportations, while also tackling issues related to human trafficking, drug smuggling, and immigration fraud.
Travel ban: A travel ban is a governmental restriction that prohibits individuals from entering or leaving a specific country or region, often imposed for reasons related to national security, public health, or foreign policy. Such bans can significantly impact immigration policies, international relations, and the movement of people across borders, reflecting broader domestic policy concerns about security and economic implications.
Muslim Ban: The Muslim Ban refers to a series of executive orders issued by President Donald Trump beginning in January 2017, aimed at restricting immigration from several predominantly Muslim countries. This controversial policy was framed as a national security measure to prevent terrorism but sparked significant debate about discrimination, civil rights, and the impact on American values and global relations.
Corporate tax rate: The corporate tax rate is the percentage of a corporation's profits that must be paid to the government as tax. This rate can significantly influence business decisions, investment strategies, and overall economic growth, as it affects how much profit companies retain and reinvest in their operations. Changes to the corporate tax rate can also impact government revenue and social policies, especially in the context of domestic economic strategies and immigration reform.
Economic growth: Economic growth refers to the increase in the production of goods and services in an economy over time, typically measured by the rise in Gross Domestic Product (GDP). It reflects the overall health and productivity of a nation’s economy and is often influenced by various factors such as technological advancements, capital investment, and labor force dynamics. Understanding economic growth is crucial for analyzing how policies like tax cuts and immigration reform can impact a nation's financial landscape and overall prosperity.
Individual income tax rates: Individual income tax rates are the percentages at which individual income is taxed by the federal government, usually based on a progressive tax system where higher incomes are taxed at higher rates. These rates play a significant role in shaping economic policies, impacting disposable income, and influencing decisions related to taxation and public spending.
2017 tax reform: The 2017 tax reform, formally known as the Tax Cuts and Jobs Act, was a significant overhaul of the U.S. tax code aimed at reducing tax rates for individuals and corporations. It introduced changes such as lowering the corporate tax rate, increasing the standard deduction, and eliminating personal exemptions, impacting various aspects of domestic economic policy and immigration funding.
Income Inequality: Income inequality refers to the uneven distribution of income and wealth among individuals or groups in a society. This disparity can impact economic growth, social stability, and overall quality of life, as it highlights the gap between the rich and poor. Factors contributing to income inequality include globalization, tax policies, labor market dynamics, and changes in government regulations.
Muslim ban: The Muslim ban refers to a series of executive orders issued by President Donald Trump in 2017 that aimed to restrict travel to the United States from several predominantly Muslim countries. The policy was framed as a national security measure, claiming to prevent potential terrorism, and became a significant point of contention in the national discourse regarding immigration, civil rights, and religious freedom.