A Controversial Economic Legacy

The Tax Cuts and Jobs Act (TCJA), signed into law by former President Donald Trump at the end of 2017, aimed to stimulate economic growth, create jobs, and bring many American businesses back domestically.

The TCJA significantly lowered the corporate tax rate from 35% to 21%, while also reducing income taxes for most individuals. In the short term, this policy contributed to GDP growth, higher corporate profits, and a booming stock market. However, critics argue that it primarily benefits the wealthy and large corporations, while increasing the federal budget deficit.

In 2025, many provisions of the TCJA will expire, raising debates about whether to extend or amend them. The story of the TCJA will continue to be a hot topic in upcoming elections and economic policy discussions in the U.S.