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Sweeping Changes and an Uncertain Legacy: The Tax Cuts and Jobs Act of 2017

[Symposium: The Tax Cuts and Jobs Act of 2017]

By William G. Gale, Jeffrey L. Hoopes, and Kyle Pomerleau

Journal of Economic Perspectives, Summer 2024

The Tax Cuts and Jobs Act (TCJA) of 2017 introduced sweeping changes to individual and corporate taxation. We summarize the major provisions, trace the origins of the Act, and compare it to previous tax changes. We also examine the effects on the govern...

Lessons from the Biggest Business Tax Cut in US History

[Symposium: The Tax Cuts and Jobs Act of 2017]

By Gabriel Chodorow-Reich, Owen Zidar, and Eric Zwick

Journal of Economic Perspectives, Summer 2024

We assess the business provisions of the 2017 Tax Cuts and Jobs Act, the biggest corporate tax cut in US history. We draw five lessons. First, corporate tax revenue fell by 40 percent due to the lower rate and more generous expensing. Second, firms with...