The Tax Cuts and Jobs Act: Impact and Implications

This chapter explores the historical context and key features of the Tax Cuts and Jobs Act (TCJA) of 2017, particularly the reduction in the corporate tax rate and changes in international tax policy. It examines the promises surrounding the tax cuts regarding economic growth and investment, alongside the criticisms related to income inequality and budget deficits. The analysis reveals that while some investment increases were observed, the overall benefits for workers and revenue generation were significantly less than expected.