When President Donald Trump Signed the Tax Cuts and Jobs Act: What It Meant for America

A Historic Rewrite of the Tax Code

Before 2017, the U.S. corporate tax rate stood at 35 percent, one of the highest among developed nations. The Tax Cuts and Jobs Act slashed that rate to 21 percent permanently, arguing that lower corporate taxes would encourage investment, job creation, and economic expansion.

For individuals, the law:

• Reduced most income tax rates
• Nearly doubled the standard deduction
• Expanded the child tax credit
• Limited the state and local tax (SALT) deduction
• Temporarily lowered estate taxes

Unlike the corporate cuts, most individual tax provisions were designed to expire after 2025 unless extended by Congress.