Tax Cut and Jobs Act

The Tax Cut and Jobs Act (TCJA), enacted in December 2017, is a significant tax reform law in the United States. It reduced tax rates for individuals and businesses, aiming to stimulate economic growth. The law lowered the corporate tax rate from 35% to 21% and created a simpler tax filing process. It also increased the standard deduction and child tax credit but limited some deductions, such as state and local taxes. While it aimed to boost investment and job creation, opinions vary on its long-term impacts on the economy and the federal deficit.