TCJA (Tax Cuts and Jobs Act)

The Tax Cuts and Jobs Act (TCJA), enacted in 2017, is a major overhaul of the U.S. tax code aimed at reducing taxes for individuals and businesses. It lowered individual income tax rates, increased the standard deduction, and reduced some deductions. For businesses, it lowered the corporate tax rate from 35% to 21% and encouraged investment through new incentives. The law also made changes to international tax rules and adjustments to estate taxes. Overall, the TCJA sought to stimulate economic growth, simplify certain parts of the tax system, and make the U.S. more competitive globally.