Individual and corporate taxation

• Eliminated the personal and dependent exemptions: The TCJA eliminated the personal and dependent exemptions. This means that taxpayers can no longer deduct a certain amount of income for each person on their tax return.
• Capped the state and local tax deduction (SALT deduction): The TCJA capped the SALT deduction at $10,000 per year. This deduction allows taxpayers to deduct certain state and local taxes from their federal income tax.
• Increased the child tax credit: The TCJA doubled the child tax credit from $1,000 to $2,000 per child. It also made the credit refundable, meaning that taxpayers who do not owe any federal income tax can still receive the credit.

Corporate taxation

• Reduced the corporate income tax rate: The TCJA reduced the corporate income tax rate from 35% to 21%. This is the largest reduction in the corporate income tax rate in US history.
• Eliminated the corporate alternative minimum tax (AMT): The TCJA eliminated the corporate AMT. The corporate AMT was a parallel tax system that was designed to ensure that all corporations pay a minimum amount of tax.
• Allowed for 100% expensing of equipment investment: The TCJA allows businesses to deduct the full cost of equipment investments in the year they are made. This was previously only allowed for smaller businesses.
• Changed the way that net operating losses (NOLs) are deducted: The TCJA allows businesses to deduct NOLs from up to 80% of their taxable income in the year they are incurred. This was previously limited to 20% of taxable income.

The TCJA has had a number of significant impacts on individual and corporate taxation in the United States. For individuals, the TCJA has lowered tax rates and increased the standard deduction. This has resulted in lower taxes for many taxpayers. However, the TCJA has also eliminated the personal and dependent exemptions and capped the SALT deduction. This has increased taxes for some taxpayers, particularly those in high-tax states.

For corporations, the TCJA has lowered tax rates and eliminated the corporate AMT. This has resulted in significant tax savings for many corporations. The TCJA has also allowed businesses to fully expense equipment investments and deduct NOLs from up to 80% of their taxable income. This has made it easier for businesses to invest and grow.

Overall, the TCJA has had a positive impact on the US economy. The TCJA has boosted economic growth and created jobs. However, the TCJA has also increased the federal budget deficit. The long-term impact of the TCJA on the US economy is still uncertain.

The Tax Cuts and Jobs Act of 2017 (TCJA) was the most significant tax reform legislation in the United States in over 30 years. The TCJA made a number of changes to individual and corporate taxation, including:

Individual taxation

• Lowered individual income tax rates: The TCJA reduced the top individual income tax rate from 39.6% to 37%. It also lowered the rates for the other tax brackets.
• Increased the standard deduction: The TCJA doubled the standard deduction for individuals and married couples filing jointly. This means that more taxpayers can claim the standard deduction and avoid itemizing their deductions.