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Tax Cuts and Jobs Act

Updated: Wikipedia source

Tax Cuts and Jobs Act

The Tax Cuts and Jobs Act, Pub. L. 115–97 (text) (PDF), is a United States federal law that amended the Internal Revenue Code of 1986, and also known as the Trump Tax Cuts, but officially the law has no short title, with that being removed during the Senate amendment process. The New York Times described the TCJA as "the most sweeping tax overhaul in decades". Studies show the TCJA increased the federal debt, as well as after-tax incomes disproportionately for the most affluent. It led to an estimated 11% increase in corporate investment, but its effects on economic growth and median wages were smaller than expected and modest at best. Major elements of the changes include reducing tax rates for corporations and individuals, increasing the standard deduction and family tax credits, eliminating personal exemptions and making it less beneficial to itemize deductions, limiting deductions for state and local income taxes and property taxes, further limiting the mortgage interest deduction, reducing the alternative minimum tax for individuals and eliminating it for corporations, doubling the estate tax exemption, and reducing the penalty for violating the individual mandate of the Affordable Care Act (ACA) to $0. Most of the changes introduced by the bill went into effect on January 1, 2018, and did not affect 2017 taxes. Many tax cut provisions contained in the TCJA, notably including individual income tax cuts, such as the changes to the standard deduction in §63 of the IRC, were scheduled to expire in 2025 while many of the business tax cuts were set to expire in 2028. However, in 2025, Congress passed the One Big Beautiful Bill Act, which extends most provisions of the TCJA beyond their original expiration dates. Extending the cuts have caused economists across the political spectrum to worry it could boost inflationary pressures and worsen America's fiscal trajectory. The Congressional Budget Office estimated that extending the expiring provisions would add $4.6 trillion in deficits over 10 years.

Infobox

Long title
An Act to provide for reconciliation pursuant to titles II and V of the concurrent resolution on the budget for fiscal year 2018
Acronyms (colloquial)
TCJA
Nicknames
Tax Cuts and Jobs ActGOP tax reformTrump tax cutsCut Cut Cut Act
Enacted by
the 115th United States Congress
Effective
January 1, 2018
Public law
Pub. L. 115–97 (text) (PDF)
Statutes at Large
131 Stat. 2054
Acts affected
Internal Revenue Code of 1986
Agencies affected
Internal Revenue Service

Tables

Single filers (2018)[16] · Plan elements › Individual income tax
Rate
Rate
Under previous law
Rate
Under previous law
Income bracket
Under TCJA
Rate
Under TCJA
Income bracket
10%
10%
Under previous law
10%
Under previous law
$0–$9,525
Under TCJA
10%
Under TCJA
$0–$9,525
15%
15%
Under previous law
15%
Under previous law
$9,525–$38,700
Under TCJA
12%
Under TCJA
$9,525–$38,700
25%
25%
Under previous law
25%
Under previous law
$38,700–$93,700
Under TCJA
22%
Under TCJA
$38,700–$82,500
28%
28%
Under previous law
28%
Under previous law
$93,700–$195,450
Under TCJA
24%
Under TCJA
$82,500–$157,500
33%
33%
Under previous law
33%
Under previous law
$195,450–$424,950
Under TCJA
32%
Under TCJA
$157,500–$200,000
35%
35%
Under previous law
35%
Under previous law
$424,950–$426,700
Under TCJA
35%
Under TCJA
$200,000–$500,000
39.6%
39.6%
Under previous law
39.6%
Under previous law
$426,700 and up
Under TCJA
37%
Under TCJA
$500,000 and up
Under previous law
Under TCJA
Rate
Income bracket
Rate
Income bracket
10%
$0–$9,525
10%
$0–$9,525
15%
$9,525–$38,700
12%
$9,525–$38,700
25%
$38,700–$93,700
22%
$38,700–$82,500
28%
$93,700–$195,450
24%
$82,500–$157,500
33%
$195,450–$424,950
32%
$157,500–$200,000
35%
$424,950–$426,700
35%
$200,000–$500,000
39.6%
$426,700 and up
37%
$500,000 and up
Married filing jointly (2018)[16] · Plan elements › Individual income tax
Rate
Rate
Under previous law
Rate
Under previous law
Income bracket
Under TCJA
Rate
Under TCJA
Income bracket
10%
10%
Under previous law
10%
Under previous law
$0–$19,050
Under TCJA
10%
Under TCJA
$0–$19,050
15%
15%
Under previous law
15%
Under previous law
$19,050–$77,400
Under TCJA
12%
Under TCJA
$19,050–$77,400
25%
25%
Under previous law
25%
Under previous law
$77,400–$156,150
Under TCJA
22%
Under TCJA
$77,400–$165,000
28%
28%
Under previous law
28%
Under previous law
$156,150–$237,950
Under TCJA
24%
Under TCJA
$165,000–$315,000
33%
33%
Under previous law
33%
Under previous law
$237,950–$424,950
Under TCJA
32%
Under TCJA
$315,000–$400,000
35%
35%
Under previous law
35%
Under previous law
$424,950–$480,050
Under TCJA
35%
Under TCJA
$400,000–$600,000
39.6%
39.6%
Under previous law
39.6%
Under previous law
$480,050 and up
Under TCJA
37%
Under TCJA
$600,000 and up
Under previous law
Under TCJA
Rate
Income bracket
Rate
Income bracket
10%
$0–$19,050
10%
$0–$19,050
15%
$19,050–$77,400
12%
$19,050–$77,400
25%
$77,400–$156,150
22%
$77,400–$165,000
28%
$156,150–$237,950
24%
$165,000–$315,000
33%
$237,950–$424,950
32%
$315,000–$400,000
35%
$424,950–$480,050
35%
$400,000–$600,000
39.6%
$480,050 and up
37%
$600,000 and up
Tax Cuts and Jobs Act – Vote in the House of Representatives (November 16, 2017)[102] · Legislative history › Pre-conference vote › House of Representatives
Total (434)
Total (434)
Party
Total (434)
Party
227
Votes for
205
Votes against
2
Party
Votes for
Votes against
Not voting/Absent
Republican (240)
227
13 Dan DonovanJohn FasoRodney FrelinghuysenDarrell IssaWalter B. Jones Jr.Peter T. KingLeonard LanceFrank LoBiondoTom McClintockDana RohrabacherChris SmithElise StefanikLee Zeldin
Democratic (194)
192
2 Mark PocanFrederica Wilson
Total (434)
227
205
2
Tax Cuts and Jobs Act – Vote in the Senate (December 2, 2017)[103] · Legislative history › Pre-conference vote › Senate
Total (100)
Total (100)
Party
Total (100)
Party
51
Votes for
49
Votes against
Party
Votes for
Votes against
Not voting/Absent
Republican (52)
51
1 Bob Corker
Democratic (46)
46
Independent (2)
2 Angus KingBernie Sanders
Total (100)
51
49
Tax Cuts and Jobs Act – Vote in the House of Representatives (December 19, 2017)[104] · Legislative history › Post-conference vote › House of Representatives
Total (432)
Total (432)
Party
Total (432)
Party
227
Votes for
203
Votes against
2
Party
Votes for
Votes against
Not voting/Absent
Republican (239)
227
12 Dan DonovanJohn FasoRodney FrelinghuysenDarrell IssaWalter B. Jones Jr.Peter T. KingLeonard LanceFrank LoBiondoDana RohrabacherChris SmithElise StefanikLee Zeldin
Democratic (193)
191
2 Joe Kennedy IIIMark Pocan
Total (432)
227
203
2
Act to provide for reconciliation – Vote in the House of Representatives (December 20, 2017)[105] · Legislative history › Post-conference vote › House of Representatives
Total (432)
Total (432)
Party
Total (432)
Party
224
Votes for
201
Votes against
7
Party
Votes for
Votes against
Not voting/Absent
Republican (239)
224
12 Dan DonovanJohn FasoRodney FrelinghuysenDarrell IssaWalter B. Jones Jr.Peter T. KingLeonard LanceFrank LoBiondoDana RohrabacherChris SmithElise StefanikLee Zeldin
3 Mo BrooksJim RenacciLamar Smith
Democratic (193)
189
4 Joe Kennedy IIIGrace NapolitanoMark PocanBennie Thompson
Total (432)
224
201
7
Act to provide for reconciliation – Vote in the Senate (December 20, 2017)[106] · Legislative history › Post-conference vote › Senate
Total (100)
Total (100)
Party
Total (100)
Party
51
Votes for
48
Votes against
1
Party
Votes for
Votes against
Not voting/Absent
Republican (52)
51
1 John McCain
Democratic (46)
46
Independent (2)
2 Angus KingBernie Sanders
Total (100)
51
48
1
· Public opinion
Start
Start
Poll source
Start
Fieldwork
End
The New York Times/SurveyMonkey
The New York Times/SurveyMonkey
Poll source
The New York Times/SurveyMonkey
Fieldwork
February 5, 2018
Fieldwork
February 11, 2018
Support/Approve
51%
Oppose/Disapprove
46%
Monmouth University
Monmouth University
Poll source
Monmouth University
Fieldwork
January 28, 2018
Fieldwork
January 30, 2018
Support/Approve
44%
Oppose/Disapprove
44%
Harvard/Harris Poll
Harvard/Harris Poll
Poll source
Harvard/Harris Poll
Fieldwork
January 17, 2018
Fieldwork
January 19, 2018
Support/Approve
47%
Oppose/Disapprove
53%
Politico/Morning Consult
Politico/Morning Consult
Poll source
Politico/Morning Consult
Fieldwork
January 11, 2018
Fieldwork
January 16, 2018
Support/Approve
45%
Oppose/Disapprove
34%
GQR Research
GQR Research
Poll source
GQR Research
Fieldwork
January 6, 2018
Fieldwork
January 11, 2018
Support/Approve
43%
Oppose/Disapprove
46%
The New York Times/SurveyMonkey
The New York Times/SurveyMonkey
Poll source
The New York Times/SurveyMonkey
Fieldwork
January 1, 2018
Fieldwork
January 5, 2018
Support/Approve
46%
Oppose/Disapprove
49%
The Economist/YouGov
The Economist/YouGov
Poll source
The Economist/YouGov
Fieldwork
December 31, 2017
Fieldwork
January 2, 2018
Support/Approve
37%
Oppose/Disapprove
39%
McLaughlin & Associates
McLaughlin & Associates
Poll source
McLaughlin & Associates
Fieldwork
December 14, 2017
Fieldwork
December 18, 2017
Support/Approve
49%
Oppose/Disapprove
41%
Politico/Morning Consult
Politico/Morning Consult
Poll source
Politico/Morning Consult
Fieldwork
December 14, 2017
Fieldwork
December 18, 2017
Support/Approve
42%
Oppose/Disapprove
39%
CNN/SSRS
CNN/SSRS
Poll source
CNN/SSRS
Fieldwork
December 14, 2017
Fieldwork
December 17, 2017
Support/Approve
33%
Oppose/Disapprove
55%
NBC News/The Wall Street Journal
NBC News/The Wall Street Journal
Poll source
NBC News/The Wall Street Journal
Fieldwork
December 13, 2017
Fieldwork
December 15, 2017
Support/Approve
24%
Oppose/Disapprove
41%
Public Opinion Strategies (R)
Public Opinion Strategies (R)
Poll source
Public Opinion Strategies (R)
Fieldwork
December 12, 2017
Fieldwork
December 16, 2017
Support/Approve
40%
Oppose/Disapprove
49%
Monmouth University
Monmouth University
Poll source
Monmouth University
Fieldwork
December 10, 2017
Fieldwork
December 12, 2017
Support/Approve
26%
Oppose/Disapprove
47%
Quinnipiac University
Quinnipiac University
Poll source
Quinnipiac University
Fieldwork
December 6, 2017
Fieldwork
December 11, 2017
Support/Approve
26%
Oppose/Disapprove
55%
USA Today/Suffolk University
USA Today/Suffolk University
Poll source
USA Today/Suffolk University
Fieldwork
December 5, 2017
Fieldwork
December 9, 2017
Support/Approve
32%
Oppose/Disapprove
48%
Vice News/SurveyMonkey
Vice News/SurveyMonkey
Poll source
Vice News/SurveyMonkey
Fieldwork
December 5, 2017
Fieldwork
December 6, 2017
Support/Approve
39%
Oppose/Disapprove
56%
Reuters/Ipsos
Reuters/Ipsos
Poll source
Reuters/Ipsos
Fieldwork
December 3, 2017
Fieldwork
December 7, 2017
Support/Approve
31%
Oppose/Disapprove
49%
CBS News
CBS News
Poll source
CBS News
Fieldwork
December 3, 2017
Fieldwork
December 5, 2017
Support/Approve
35%
Oppose/Disapprove
53%
Gallup
Gallup
Poll source
Gallup
Fieldwork
December 1, 2017
Fieldwork
December 2, 2017
Support/Approve
29%
Oppose/Disapprove
56%
Quinnipiac University
Quinnipiac University
Poll source
Quinnipiac University
Fieldwork
November 29, 2017
Fieldwork
December 4, 2017
Support/Approve
29%
Oppose/Disapprove
53%
Reuters/Ipsos
Reuters/Ipsos
Poll source
Reuters/Ipsos
Fieldwork
November 23, 2017
Fieldwork
November 27, 2017
Support/Approve
29%
Oppose/Disapprove
49%
Harvard/Harris Poll
Harvard/Harris Poll
Poll source
Harvard/Harris Poll
Fieldwork
November 11, 2017
Fieldwork
November 14, 2017
Support/Approve
46%
Oppose/Disapprove
54%
Politico/Morning Consult
Politico/Morning Consult
Poll source
Politico/Morning Consult
Fieldwork
November 9, 2017
Fieldwork
November 11, 2017
Support/Approve
47%
Oppose/Disapprove
40%
Quinnipiac University
Quinnipiac University
Poll source
Quinnipiac University
Fieldwork
November 7, 2017
Fieldwork
November 13, 2017
Support/Approve
25%
Oppose/Disapprove
52%
The Economist/YouGov
The Economist/YouGov
Poll source
The Economist/YouGov
Fieldwork
November 5, 2017
Fieldwork
November 7, 2017
Support/Approve
30%
Oppose/Disapprove
40%
Politico/Morning Consult
Politico/Morning Consult
Poll source
Politico/Morning Consult
Fieldwork
November 2, 2017
Fieldwork
November 6, 2017
Support/Approve
45%
Oppose/Disapprove
36%
CNN/SSRS
CNN/SSRS
Poll source
CNN/SSRS
Fieldwork
November 2, 2017
Fieldwork
November 5, 2017
Support/Approve
31%
Oppose/Disapprove
45%
ABC/The Washington Post
ABC/The Washington Post
Poll source
ABC/The Washington Post
Fieldwork
October 26, 2017
Fieldwork
November 1, 2017
Support/Approve
33%
Oppose/Disapprove
50%
Politico/Morning Consult
Politico/Morning Consult
Poll source
Politico/Morning Consult
Fieldwork
October 26, 2017
Fieldwork
October 30, 2017
Support/Approve
48%
Oppose/Disapprove
37%
Reuters/Ipsos
Reuters/Ipsos
Poll source
Reuters/Ipsos
Fieldwork
October 20, 2017
Fieldwork
October 23, 2017
Support/Approve
28%
Oppose/Disapprove
41%
CNN/SSRS
CNN/SSRS
Poll source
CNN/SSRS
Fieldwork
October 12, 2017
Fieldwork
October 15, 2017
Support/Approve
34%
Oppose/Disapprove
52%
Politico/Morning Consult
Politico/Morning Consult
Poll source
Politico/Morning Consult
Fieldwork
September 29, 2017
Fieldwork
October 1, 2017
Support/Approve
48%
Oppose/Disapprove
37%
ABC/The Washington Post
ABC/The Washington Post
Poll source
ABC/The Washington Post
Fieldwork
September 18, 2017
Fieldwork
September 21, 2017
Support/Approve
28%
Oppose/Disapprove
44%
Poll source
Fieldwork
Support/Approve
Oppose/Disapprove
Ref.
Start
End
The New York Times/SurveyMonkey
February 5, 2018
February 11, 2018
51%
46%
Monmouth University
January 28, 2018
January 30, 2018
44%
44%
Harvard/Harris Poll
January 17, 2018
January 19, 2018
47%
53%
Politico/Morning Consult
January 11, 2018
January 16, 2018
45%
34%
GQR Research
January 6, 2018
January 11, 2018
43%
46%
The New York Times/SurveyMonkey
January 1, 2018
January 5, 2018
46%
49%
The Economist/YouGov
December 31, 2017
January 2, 2018
37%
39%
McLaughlin & Associates
December 14, 2017
December 18, 2017
49%
41%
Politico/Morning Consult
December 14, 2017
December 18, 2017
42%
39%
CNN/SSRS
December 14, 2017
December 17, 2017
33%
55%
NBC News/The Wall Street Journal
December 13, 2017
December 15, 2017
24%
41%
Public Opinion Strategies (R)
December 12, 2017
December 16, 2017
40%
49%
Monmouth University
December 10, 2017
December 12, 2017
26%
47%
Quinnipiac University
December 6, 2017
December 11, 2017
26%
55%
USA Today/Suffolk University
December 5, 2017
December 9, 2017
32%
48%
Vice News/SurveyMonkey
December 5, 2017
December 6, 2017
39%
56%
Reuters/Ipsos
December 3, 2017
December 7, 2017
31%
49%
CBS News
December 3, 2017
December 5, 2017
35%
53%
Gallup
December 1, 2017
December 2, 2017
29%
56%
Quinnipiac University
November 29, 2017
December 4, 2017
29%
53%
Reuters/Ipsos
November 23, 2017
November 27, 2017
29%
49%
Harvard/Harris Poll
November 11, 2017
November 14, 2017
46%
54%
Politico/Morning Consult
November 9, 2017
November 11, 2017
47%
40%
Quinnipiac University
November 7, 2017
November 13, 2017
25%
52%
The Economist/YouGov
November 5, 2017
November 7, 2017
30%
40%
Politico/Morning Consult
November 2, 2017
November 6, 2017
45%
36%
CNN/SSRS
November 2, 2017
November 5, 2017
31%
45%
ABC/The Washington Post
October 26, 2017
November 1, 2017
33%
50%
Politico/Morning Consult
October 26, 2017
October 30, 2017
48%
37%
Reuters/Ipsos
October 20, 2017
October 23, 2017
28%
41%
CNN/SSRS
October 12, 2017
October 15, 2017
34%
52%
Politico/Morning Consult
September 29, 2017
October 1, 2017
48%
37%
ABC/The Washington Post
September 18, 2017
September 21, 2017
28%
44%

References

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  2. There were three vacant seats in the House of Representatives after Tim Murphy's resignation on October 21, 2017; John C
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