The Tax Cuts and Jobs Act (TCJA) of 2017 can be seen as a major overhaul of the U.S. tax code, signed by President Donald Trump. It lowered the corporate tax rate from 35% to 21% in addition to reducing individual income tax rates across most brackets. The Tax Cuts and Jobs Act (TCJA) lowered the top marginal rate from 39.6% to 37%. It also raised the thresholds for higher tax brackets.
Significance:
- Trump’s Tax Cuts and Jobs Act (TCJA) lowered the Top Marginal Tax Rate from 39.6% to 37% for Income above $600,000 ($763,000 in 2025)
- TCJA eliminated the Affordable Care Act’s Individual Mandates tax penalty
- TCJA kept the bottom bracket the same at 10%, lowered the rest of the brackets, kept the 35% bracket the same, and lowered the Top Marginal Tax Bracket to 37%
- Major reduction to the Corporate tax rate from 35% to 21%
- Moved indexes from CPI to Chained CPI, in essence a slow tax increase allowing Bracket Creep over time
- Limited State and Local Tax (SALT) deductions to $10,000 a move largely impacting high income states
