Tax Cuts and Jobs Act of 2017

Extracted Attributes

• Type

  U.S. federal tax legislation, Congressional Revenue Act

• Alias

  Trump Tax Cuts

• Amended

  Internal Revenue Code of 1986

• Country

  United States

• Common Name

  Tax Cuts and Jobs Act (TCJA)

• Official Title

  An Act to provide for reconciliation pursuant to titles II and V of the concurrent resolution on the budget for fiscal year 2018, Pub. L. 115–97

• Senate Vote (final)

  51–48

• House Vote (initial)

  227–205

• Impact on Median Wages

  Smaller than expected and modest

• Impact on Economic Growth

  Smaller than expected and modest

• House Vote (final re-vote)

  224–201

• Impact on Corporate Investment

  Estimated 11% increase

• Key Change - Corporate Tax Rate

  Reduced permanently to 21% (from 35%)

• Key Change - Standard Deduction

  Increased

• Key Change - Personal Exemptions

  Eliminated

• Key Change - Estate Tax Exemption

  Doubled

• Key Change - Individual Tax Rates

  Reduced

• Estimated Deficits from Extension (CBO)

  $4.6 trillion over 10 years

• Estimated Impact on National Debt (CBO)

  Added $2.289 trillion over 10 years (or $1.891 trillion after macroeconomic feedback)

• Key Change - Mortgage Interest Deduction

  Further limited

• Public Opinion (Real Clear Politics 2017)

  34% in favor, 39% not in favor, 28% unsure

• Key Change - Pass-through Income Deduction

  20% for many business entities (except service providers)

• Key Change - ACA Individual Mandate Penalty

  Reduced to $0

• Estimated Tax Reduction (Tax Policy Center 2017)

  ~$1,600 on average in 2018 and 2025

• Key Change - State and Local Tax (SALT) Deduction

  Limited to $10,000

• Distribution of Tax Savings (Tax Policy Center 2017)

  Top 20% of Americans by income projected to receive ~65%

• Estimated Federal Revenue Reduction (Tax Foundation)

  $1.47 trillion over 10 years (before economic growth)

• Key Change - Alternative Minimum Tax (AMT) for Individuals

  Reduced

• Key Change - Alternative Minimum Tax (AMT) for Corporations

  Eliminated

Timeline

• The bill was introduced in the House of Representatives by Congressman Kevin Brady (R-Texas). (Source: Web Search Results (Wikipedia snippet))

  2017-11-02

• The House Ways and Means Committee passed the bill on a party-line vote. (Source: Web Search Results (Wikipedia snippet))

  2017-11-09

• The House passed the initial version of the bill (227–205). (Source: Web Search Results (Wikipedia snippet))

  2017-11-16

• A joint conference committee agreed on the bill. (Source: Web Search Results (Wikipedia snippet))

  2017-12-15

• The House passed the penultimate version of the bill. (Source: DBPedia, Web Search Results (Wikipedia snippet))

  2017-12-19

• The Senate passed the final bill (51–48). (Source: DBPedia, Web Search Results (Wikipedia snippet))

  2017-12-20

• The House held a re-vote for procedural reasons, passing the bill (224–201). (Source: DBPedia, Web Search Results (Wikipedia snippet))

  2017-12-20

• The bill was signed into law by President Donald Trump. (Source: DBPedia, Web Search Results (Wikipedia snippet))

  2017-12-22

• Most changes introduced by the bill went into effect. (Source: Wikipedia, DBPedia)

  2018-01-01

• Most individual income tax cuts and over twenty provisions were originally scheduled to expire by the end of this year. (Source: Wikipedia, Web Search Results (Cornell Law))

  2025-12-31

• Congress passed the One Big Beautiful Bill Act, which extended most provisions of the TCJA beyond their original expiration dates. (Source: Wikipedia, Web Search Results (Charles Schwab))

  2025

• Many business tax cuts were originally set to expire by the end of this year. (Source: Wikipedia)

  2028-12-31

Tax Cuts and Jobs Act

The Tax Cuts and Jobs Act, Pub. L. 115–97 (text) (PDF), is a United States federal law that amended the Internal Revenue Code of 1986, and also known as the Trump Tax Cuts, but officially the law has no short title, with that being removed during the Senate amendment process. The New York Times described the TCJA as "the most sweeping tax overhaul in decades". Studies show the TCJA increased the federal debt, as well as after-tax incomes disproportionately for the most affluent. It led to an estimated 11% increase in corporate investment, but its effects on economic growth and median wages were smaller than expected and modest at best. Major elements of the changes include reducing tax rates for corporations and individuals, increasing the standard deduction and family tax credits, eliminating personal exemptions and making it less beneficial to itemize deductions, limiting deductions for state and local income taxes and property taxes, further limiting the mortgage interest deduction, reducing the alternative minimum tax for individuals and eliminating it for corporations, doubling the estate tax exemption, and reducing the penalty for violating the individual mandate of the Affordable Care Act (ACA) to $0. Most of the changes introduced by the bill went into effect on January 1, 2018, and did not affect 2017 taxes. Many tax cut provisions contained in the TCJA, notably including individual income tax cuts, such as the changes to the standard deduction in §63 of the IRC, were scheduled to expire in 2025 while many of the business tax cuts were set to expire in 2028. However, in 2025, Congress passed the One Big Beautiful Bill Act, which extends most provisions of the TCJA beyond their original expiration dates. Extending the cuts have caused economists across the political spectrum to worry it could boost inflationary pressures and worsen America's fiscal trajectory. The Congressional Budget Office estimated that extending the expiring provisions would add $4.6 trillion in deficits over 10 years.

Web Search Results

• Tax Cuts and Jobs Act of 2017 (TCJA) | Wex | US Law

  The Tax Cuts and Jobs Act of 2017 (TCJA) is the unofficial name for the large set of changes to the Revenue Code of 1986, signed into law by President Trump in 2017. TCJA made many large changes across multiple areas of the tax code, including most infamously reducing the corporate tax rate, increasing the standard deduction, and increasing the applicable exclusion amounts for estate taxes. Only some of the TCJA changes were permanent, and over twenty provisions will expire by the end of 2025. [...] For businesses and investors, the TCJA greatly reduced the corporate tax rate, changed flow-through taxation, increased depreciations, and made fundamental changes to taxing international income. First, the corporate tax rate was permanently reduced to a 21% flat tax rate from 35%. Second, except for many types of service providers, individuals were given a deduction of 20% from pass-through income from business entities like partnerships and LLCs. Third, the TCJA enacted a 100% bonus deduction [...] Lawyer directory Legal encyclopedia Business law Constitutional law Criminal law Family law Employment law Money and Finances More... Help out Give Sponsor Advertise Create Promote Join Lawyer Directory 1. LII 2. Wex 3. Tax Cuts and Jobs Act of 2017 (TCJA) Tax Cuts and Jobs Act of 2017 (TCJA)

• What Is the Tax Cuts and Jobs Act (TCJA)? - Investopedia

  The Tax Cuts and Jobs Act (TCJA) was a major overhaul of the tax code, signed into law by President Donald Trump in his first term on Jan. 1, 2018. The Senate passed TCJA on Dec. 2, 2017, by a party-line vote of 51 to 49. The House passed its version by a vote of 224 to 201. No House Democrats supported the bill, and 12 Republicans voted against it.

• Tax Cuts and Jobs Act (TCJA) | TaxEDU Glossary

  Skip to content Glossary Video Primers Principles Courses Search # Tax Cuts and Jobs Act (TCJA) The Tax Cuts and Jobs Act in 2017 overhauled the federal tax code by reforming individual and business taxes. It was pro-growth reform, significantly lowering marginal tax rates and cost of capital. We estimated it reduced federal revenue by $1.47 trillion over 10 years before accounting for economic growth. ## What Were the Major Features of the Tax Cuts and Jobs Act? ### Individual

• Tax Cuts and Jobs Act - Wikipedia

  The Tax Cuts and Jobs Act of 2017 allows a tax credit for employers that provide paid family and medical leave to employees. A 501(c)(3) organization is not eligible for the tax credit. ### Miscellaneous tax provisions [edit] | | | This section needs to be updated. Please help update this article to reflect recent events or newly available information. (December 2017) | [...] The bill was introduced in the House of Representatives on November 2, 2017 by Congressman Kevin Brady (R "Republican Party (United States)")-Texas). On November 9, 2017, the House Ways and Means Committee passed the bill on a party-line vote, advancing the bill to the House floor. The House passed the bill on November 16, 2017, on a mostly-party line vote of 227–205. No Democrat voted for the bill, while 13 Republicans voted against it. On the same day, companion legislation passed the Senate [...] joint conference committee on December 15, 2017; agreed to by the Senate on December 20, 2017 (51–48) and by the House on December 19, 2017 and December 20, 2017 (227–203 224–201) Signed into law by President Donald Trump on December 22, 2017 |

• One Big Beautiful Bill Act Tax Cuts | Charles Schwab

  The One Big Beautiful Bill Act (OBBBA) creates several new temporary tax deductions, while making permanent many of the changes within the Tax Cuts and Jobs Act (TCJA) of 2017 that were due to expire at the end of 2025. On balance, the vast majority of taxpayers should see their taxes go down, while those in the highest bracket may find they owe a bit more.

• Country

  United States

• Instance Of

  Q476068

The Act to provide for reconciliation pursuant to titles II and V of the concurrent resolution on the budget for fiscal year 2018, Pub.L. 115–97 (text) (PDF), is a congressional revenue act of the United States originally introduced in Congress as the Tax Cuts and Jobs Act (TCJA), that amended the Internal Revenue Code of 1986. Major elements of the changes include reducing tax rates for businesses and individuals, increasing the standard deduction and family tax credits, eliminating personal exemptions and making it less beneficial to itemize deductions, limiting deductions for state and local income taxes and property taxes, further limiting the mortgage interest deduction, reducing the alternative minimum tax for individuals and eliminating it for corporations, doubling the estate tax exemption, and cancelling the penalty enforcing individual mandate of the Affordable Care Act (ACA). The Act is based on tax reform advocated by congressional Republicans and the Trump administration. The nonpartisan Congressional Budget Office (CBO) reported that under the Act individuals and pass-through entities like partnerships and S corporations would receive about $1.125 trillion in net benefits (i.e. net tax cuts offset by reduced healthcare subsidies) over 10 years, while corporations would receive around $320 billion in benefits. The CBO estimated that implementing the Act would add an estimated $2.289 trillion to the national debt over ten years, or about $1.891 trillion after taking into account macroeconomic feedback effects, in addition to the $9.8 trillion increase forecast under the current policy baseline and existing $20 trillion national debt. Many tax cut provisions, especially income tax cuts, will expire in 2025, and starting in 2021 will increase over time; by 2027 this would affect an estimated 65% of the population and in that same year the law's provisions are set to be fully enacted, but the corporate tax cuts are permanent. The Senate was able to pass the bill with only 51 votes, without the need to defeat a filibuster, under the budget reconciliation process. The House passed the penultimate version of the bill on December 19, 2017. The Senate passed the final bill, 51–48, on December 20, 2017. On the same day, a re-vote was held in the House for procedural reasons; the bill passed, 224–201. The bill was signed into law by President Donald Trump on December 22, 2017. Most of the changes introduced by the bill went into effect on January 1, 2018, and did not affect 2017 taxes. Supporters argued that the law would increase GDP growth, increase levels of business investment, increase wage and salary income for households, that the tax cuts would pay for themselves, and that the law would simplify tax codes. Opponents argued that the law would result in adverse impacts, including a higher budget deficit, higher trade deficit, greater income inequality, and lower healthcare coverage and higher healthcare costs, and a disproportionate impact on certain states and professions. Critics also argued that advocates misrepresented the law. Some of the reforms enacted by the Republicans have become controversial within key states, particularly the $10,000 cap on state and local tax deductibility, and were challenged in federal court before being upheld. According to an aggregation of polls from Real Clear Politics, 34% of Americans were in favor of the new plan, 39% not in favor, and 28% unsure. According to a 2017 report by Tax Policy Center, taxes would be reduced by about $1,600 on average in 2018 and 2025. The top 20% of Americans by income were projected to receive roughly 65% of the tax savings. In the two years since the Act was passed, it has failed to pay for itself through increased economic growth, according to Maya MacGuineas, president of the Committee for a Responsible Federal Budget. According to Bloomberg, the Act has simplified the tax code for some, but not others, lowered corporate debt, led investment to temporarily increase before then declining, and brought money back from overseas, but did not bring back business activity.