The Tax Cuts and Jobs Act

The Tax Cuts and Jobs Act (TCJA), enacted in December 2017, was a significant overhaul of the U.S. tax system. It aimed to reduce tax rates for individuals and businesses, increase the standard deduction, and eliminate some deductions and credits. For corporations, the federal tax rate was cut from 35% to 21%. The law intended to stimulate economic growth and job creation but also increased the national deficit. While many taxpayers received lower tax bills, the benefits varied based on income levels and location, leading to ongoing debates about its long-term effects on the economy and government revenue.