At a Glance: Tax Reform
The President signed the Tax Cuts and Jobs Act into law at the end of 2017. This event not only solidified the first major legislative victory for the new administration, but it marked the first time in more than 30 years that major reforms to the U.S. tax code have been enacted.
The President signed the Tax Cuts and Jobs Act into law at the end of 2017. This event not only solidified the first major legislative victory for the new administration, but it marked the first time in more than 30 years that major reforms to the U.S. tax code have been enacted. The legislation will reduce tax revenue by nearly $1.5 trillion over the next decade by making substantial cuts to the U.S. corporate rate, lowering rates for most individuals and families, and increasing the child tax credit, among other things. According to the Tax Policy Center, after-tax income will increase by an average of 2.2 percent for taxpayers in 2018. While the majority of taxpayers are set to benefit under the new tax plan, changes to the code are all about of trade-offs. Check out our latest Public Policy Snapshot for a rundown of the bill’s most important provisions.