TCJA (Tax Cuts and Jobs Act)

Extracted Attributes

• House Vote

  224 to 201

• Common Name

  Trump Tax Cuts

• Senate Vote

  51 to 49

• Primary Goal

  Overhaul of United States federal tax code, stimulate economic growth

• Official Name

  Tax Cuts and Jobs Act, Pub. L. 115–97

• Enactment Year

  2017

• Enacting President

  Donald Trump

• Family Tax Credits

  Enhanced

• Personal Exemptions

  Eliminated

• Estate Tax Exemption

  Doubled

• Impact on Federal Debt

  Increased

• Impact on After-Tax Incomes

  Disproportionately benefited the most affluent

• Mortgage Interest Deduction

  Further limited

• Standard Deduction Increase

  Increased (e.g., from $6,500 to $12,000 for individuals, $13,000 to $24,000 for married filers)

• Corporate Tax Rate Reduction

  From 35% to 21%

• Individual Tax Rate Reduction

  Lowered most individual income tax rates (e.g., top marginal rate from 39.6% to 37%)

• Pass-through Income Deduction

  20% deduction for certain business entities

• ACA Individual Mandate Penalty

  Reduced to $0

• Impact on Corporate Investment

  Estimated 11% increase

• State and Local Tax (SALT) Deduction

  Limited

• Corporate Alternative Minimum Tax (AMT)

  Eliminated

• Individual Alternative Minimum Tax (AMT)

  Reduced

• Impact on Economic Growth and Median Wages

  Smaller than expected, modest at best

• Estimated Deficit Increase (due to extension)

  $4.6 trillion over 10 years (CBO estimate)

• Estimated Federal Revenue Reduction (initial)

  $1.47 trillion over 10 years (before economic growth)

Timeline

• The Tax Cuts and Jobs Act (TCJA) was enacted and signed into law by President Donald Trump. (Source: Summary, Wikipedia, Web Search)

  2017

• The Senate passed the TCJA by a party-line vote of 51 to 49. (Source: Web Search)

  2017-12-02

• The House passed its version of the TCJA by a vote of 224 to 201. (Source: Web Search)

  2017-12-19

• Most changes introduced by the TCJA went into effect, not affecting 2017 taxes. (Source: Summary, Wikipedia, Web Search)

  2018-01-01

• Many individual income tax cut provisions of the TCJA were originally scheduled to expire. (Source: Summary, Wikipedia, Web Search)

  2025

• Congress passed and President Donald Trump signed the "One Big Beautiful Bill Act," extending most provisions of the TCJA beyond their original expiration dates. (Source: Summary, Wikipedia, Web Search)

  2025-07

• Many business tax cut provisions of the TCJA were originally scheduled to expire. (Source: Wikipedia)

  2028

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 - Law.Cornell.Edu

  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 [...] For individual tax deductions, the TCJA reduced some of the overall tax rates and changed many deductions. First, the TCJA reduced the seven brackets from 10%, 15%, 25%, 28%, 33%, 35%, and 39.6% respectively to 10%, 12%, 22%, 24%, 32%, 35%, and 37%. Further, the income levels for the brackets were slightly increased, which generally reduced taxes for individuals. Secondly, the TCJA greatly increased the standard deduction from $6,500 to $12,000 for individuals and from $13,000 to $24,000 for

• 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. [...] The Tax Cuts and Jobs Act (TCJA) was the most significant tax code overhaul in three decades and created a single flat corporate tax rate of 21%. Many tax benefits that helped individuals and families were initially set to expire in 2025. The One Big Beautiful Bill Act (OBBBA, 2025) permanently establishes many individual provisions, such as the lower tax brackets, bigger standard deduction, and Qualified Business Income (QBI) deduction. [...] The TCJA cut the corporate tax rate to benefit shareholders, who tend to be higher earners. It only originally cut individuals' taxes for a limited period, though the OBBA extended or made permanent many of the cuts. It scaled back the AMT and estate tax and reduced the taxes levied on pass-through income. It did not close the carried interest loophole, which benefited professional investors.

• Corporate Behavior and the Tax Cuts and Jobs Act

  The Tax Cuts and Jobs Act of 2017 (the “TCJA”) fundamentally altered United States tax law. Among other things, it broadly decreased income tax rates paid by individuals and corporations, eliminated miscellaneous itemized deductions, limited the state and local tax deduction, increased the standard deduction, reduced the alternative minimum tax for individuals and eliminated it entirely for corporations, and allowed a deduction for certain pass-through business income. [...] The TCJA made many important changes to U.S. corporate income tax law. Most fundamentally, the TCJA reduced the statutory rate on all corporate income to a flat 21 percent from a previous top marginal rate of 35 percent. Beyond reducing the statutory rate, the TCJA also affected several other provisions relevant for corporations, including those concerning earnings stripping(1)%20&p=1&sort=relevance&type=case&resultsNav=false), expensing and depreciating, net operating losses, and the taxation [...] The TCJA cut taxes by $1.5 trillion and in the process conferred significant tax benefits on U.S. corporations. Unlike the predictions of the TCJA’s proponents, economic growth has shown no sign of increasing nearly to the extent necessary for the tax cut to pay for itself. In addition to increases in discretionary spending passed shortly after the TCJA, the United States now faces the largest federal budget deficit it has ever experienced during a period of peace and economic growth. While the

• 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 [...] The TCJA lowered the corporate income tax (CIT) rate from 35 to 21 percent starting in 2018. The measure also allows full and immediate expensing of short-lived capital investments for five years and increases the section 179 expensing cap from $500,000 to $1 million. The bill eliminated or curtailed a variety of business taxes and expenditures, including the deductibility of net interest, net operating loss carrybacks and carryforwards, and the corporate alternative minimum tax (AMT). [...] The TCJA lowered most individual income tax rates, including the top marginal rate from 39.6 to 37 percent. The law maintained the seven-bracket rate structure, but the income thresholds were updated. TCJA increased the standard deduction to $12,400 for single filers and $24,800 for married filers (tax year 2020), compared with $6,500 (single) and $9,550 (married) under prior law. The bill eliminated the personal exemption and a variety of other miscellaneous deductions along with limiting

• One Big Beautiful Bill Act: Key Changes in the TCJA Extension

  Passed in 2017, the Tax Cuts and Jobs Act (TCJA) made several significant changes to the tax code that affected the tax planning strategies for millions of Americans. But many of these changes weren’t permanent and the legislation was set to expire at the end of 2025. In July 2025, Congress passed, and President Donald Trump signed into law, a comprehensive package focused on tax laws and many other issues known as the “One Big Beautiful Bill Act.” [...] The One Big Beautiful Bill Act includes numerous tax cuts and changes. Many make permanent or modify tax provisions from the 2017 Tax Cuts and Jobs Act (TCJA). [...] The 2017 Tax Cuts and Jobs Act lowered individual tax brackets across the board. Under the new legislation in 2025, these tax brackets have been made permanent (subject to changes enacted by a future Congress) and will remain as 10%, 12%, 22%, 24%, 32%, 35%, and 37%. “Knowing the new law makes permanent these brackets and other parts of the TJCA will better facilitate long-term tax planning,” says Willing. ### Increased standard deduction.