The Trump Tax Cuts and Jobs Act (TCJA) of 2017 dramatically reshaped the US tax landscape. Its core features included significant reductions in the corporate tax rate, dropping it from 35% to 21%, and temporary individual income tax cuts. Many ask, who benefited most?
On the corporate side, the lower rate undoubtedly boosted profits, leading to increased stock buybacks and, in some cases, wage increases. However, the long-term impact on job creation remains debated. For individuals, the impact varied. While most taxpayers saw some initial relief, the changes were structured to disproportionately favor higher-income earners through deductions and tax bracket adjustments.
Critics argued the TCJA exacerbated income inequality and significantly increased the national debt. Supporters contended it stimulated economic growth. As provisions sunset in the coming years, expect renewed debate and potential policy revisions regarding the Trump tax policy's lasting legacy.
