In December 2017, former President **Donald Trump** signed the **Tax Cuts and Jobs Act (TCJA)**, one of the largest changes to the U.S. tax system in decades. The law aimed to stimulate the economy by cutting taxes for corporations and individuals, but it sparked widespread controversy among supporters who saw it as a boost to economic growth and opponents who viewed it as biased towards the wealthy and increasing the budget deficit.
### **Key provisions of the tax cuts**
1. **Corporate tax reduction**: From 35% to 21%, aimed at attracting investments and creating jobs.
2. **Tax cuts for individuals**: Reduced tax rates for most income brackets, although the largest cuts were for the wealthy.
3. **New exemptions**: Such as increasing the tax deduction for families and adjustments to estate taxes.
4. **International changes**: Encouraging companies to repatriate funds from abroad with reduced taxes.
### **Positive effects**
- **Short-term economic growth**: The U.S. economy recorded high growth rates in 2018-2019.
- **Stock market recovery**: Companies benefited from the cuts to increase their profits and buy back shares.
- **Decrease in unemployment**: Reached its lowest levels in decades.
### **Criticisms and negatives**
- **Increase in the budget deficit**: According to the Congressional Budget Office (CBO), the law added **$1.9 trillion** to the deficit by 2028.
- **Wealth disparity**: The wealthy and large corporations benefited more than the middle class and workers.
- **Limited investments**: Most corporate savings did not translate into productive investments or higher wages.
### **Political controversy**
- **Republicans**: Praised the move as a success in stimulating the economy.
- **Democrats**: Described it as a "gift to the rich" and called for reforms to benefit lower-income groups.
- **Biden's presidency**: Attempted to amend some provisions, such as raising corporate taxes, but radical changes face opposition.
### **Conclusion**
Although **Trump's tax cuts** achieved some positive results, their long-term effects remain contentious, especially regarding social equity and fiscal sustainability. The debate continues on the necessity of reforming the tax system to strike a balance between economic growth and equality.