# Tax Cuts and Jobs Act Signed Into Law

> Signed the largest tax overhaul in decades: cut the corporate rate from 35% to 21%, lowered individual rates (expiring after 2025).

Donald Trump · Trade & Economy · Legislation · Dec 22, 2017
Official record: https://www.congress.gov/crs-product/R48485

## What happened

Signed the largest tax overhaul in decades: cut the corporate rate from 35% to 21%, lowered individual rates (expiring after 2025), nearly doubled the standard deduction, and capped the SALT deduction at $10,000.

## How it happened

Passed Congress along party lines via budget reconciliation and signed December 22, 2017.

## Documented impact

- [positive / substantiated] Delivered short-term economic stimulus and a permanent corporate rate cut. — CBO finds net positive economic effects for several years after enactment; the corporate cut was made permanent.
- [negative / substantiated] Significantly increased federal deficits. — The Tax Policy Center and CBO attribute large revenue losses to the law; making the individual cuts permanent was later estimated by CBO to add tens of trillions to debt over 30 years.
- [negative / projected] Long-run growth effects projected to turn negative as debt costs mount. — CBO projects a permanent extension would shrink the economy ~1.8% by 2054 as higher debt outweighs the tax cut's benefits.

## Sources

- [CRS / Congress.gov: Economic Effects of TCJA](https://www.congress.gov/crs-product/R48485)
- [Tax Policy Center: TCJA budget outlook](https://taxpolicycenter.org/briefing-book/how-did-tcja-affect-federal-budget-outlook)
- [CRFB: CBO on TCJA extension](https://www.crfb.org/blogs/unpaid-tcja-extension-would-shrink-economy-cbo-says)

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