#TrumpTaxCuts

The Tax Cuts and Jobs Act (TCJA) of 2017 was the largest overhaul of the U.S. tax code in nearly three decades, cutting the corporate rate to 21% , lowering individual rates across almost all brackets , doubling the standard deduction , capping state and local tax (SALT) deductions at $10,000 , and expanding the child tax credit to $2,000 per child . Early analyses projected a near-term boost to GDP but only modest long-term gains, with significant impacts on federal deficits and income distribution .

---

Key Provisions

Corporate Tax Cuts

Flat 21% Rate: Corporate tax fell from 35% to a flat 21% for taxable years beginning after December 31, 2017 .

Individual Tax Cuts

Lower Rates: Statutory rates were reduced at nearly every income level, with the top rate trimmed from 39.6% to 37% and bracket thresholds shifted .

Standard Deduction: Nearly doubled to $12,000 for singles and $24,000 for joint filers in 2018, simplifying filing for many taxpayers .

Child Tax Credit: Increased to $2,000 per qualifying child, including a refundable portion up to $1,400 .

SALT Cap: Limits deductions for state and local taxes to $10,000 annually, primarily affecting taxpayers in high-tax states .

---

Impact & Outcomes

Economic Growth

GDP Effects: Brookings researchers forecast a small near-term GDP boost but minimal long-term gains, as initial stimulus wanes over time .

Wage Uplift: Permanent extension of TCJA provisions is estimated to raise wages by about 0.5% and create roughly 847,000 full-time equivalent jobs over the long run .