Tax Cuts and Jobs Act

The Tax Cuts and Jobs Act (TCJA), enacted in December 2017, was a major overhaul of the U.S. tax code. It aimed to reduce taxes for individuals and businesses. Key features included lowering income tax rates, nearly doubling the standard deduction, and capping certain deductions like state and local taxes. For corporations, the tax rate was significantly cut from 35% to 21%. The act aimed to stimulate economic growth and boost wages, but it also increased the federal deficit. Its long-term impact on the economy and taxpayers remains a topic of discussion and debate.