Trump Tax Cut 2017

About Trump Tax Cut 2017

The Tax Cuts and Jobs Act of 2017 was the most significant US tax reform since 1986. The act reduced the corporate tax rate from 35 percent to 21 percent. It lowered individual rates and doubled the standard deduction. The act capped the state and local tax deduction at 10,000, hitting high tax states like California and New York. The pass through deduction gave 20 percent deductions to many businesses. The Joint Committee on Taxation estimated the act would add 1.5 trillion to the national debt over 10 years. Proponents argued it would boost growth and investment. Critics noted it primarily benefited corporations and the wealthy. The corporate tax cut did not generate the promised investment boom but did lead to record stock buybacks.