Tax Cuts and Jobs Act (TCJA)

The Tax Cuts and Jobs Act (TCJA), enacted in December 2017, was a significant reform of the U.S. tax code. It aimed to lower tax rates for individuals and businesses, which was intended to stimulate economic growth. The law reduced the corporate tax rate from 35% to 21% and temporarily lowered individual tax rates across various income brackets. Additionally, it increased the standard deduction and limited some deductions, such as state and local taxes. While supporters argued it would boost investment and job creation, critics raised concerns about long-term deficits and benefits primarily favoring the wealthy.