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About

The Tax Cuts and Jobs Act of 2017 (TCJA) was a landmark piece of tax legislation that lowered taxes for individuals and corporations, increased investments, and encouraged economic growth. TPA encourages Congress to act now to extend key provisions in the TCJA and capitalize on a new opportunity to continue to simplify the tax code and benefit taxpayers and businesses.

TCJA Fast Facts

  • Lowered marginal rates across all income brackets, reducing the tax burden for individuals and creating opportunities for increased economic activity.
  • Doubled the standard deduction, simplifying the tax bill for many Americans.
  • Lowered the corporate tax rate from 35 percent to 21 percent, encouraging investment and business growth.
  • Created a cap of $10,000 for the state and local tax deduction for individual filers, simplifying the tax code across state lines.
  • Enabled pass through businesses to deduct 20% of income, further contributing to business growth and stability for small businesses.
  • Doubled the estate tax exemption, allowing for more flexibility for family-owned businesses to transition ownership.
  • Maintained the carried interest exemption for investment managers, shifting the qualified period from 1 to 3 years. This provision is key for firms to reinvest in new businesses and contribute to economic innovation. 

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