Federal Tax Reform: Analysis of the Tax Cuts and Jobs Act and Subsequent Proposals

This report analyzes the Tax Cuts and Jobs Act of 2017 (TCJA), which made significant changes to individual and corporate income tax rates, deductions, and credits. It examines the scheduled expiration of individual tax provisions and their potential fiscal impact.

The report discusses the corporate tax rate reduction from 35% to 21%, changes to the standard deduction and personal exemptions, the creation of the qualified business income deduction for pass-through entities, and modifications to the state and local tax (SALT) deduction. Revenue effects estimated by the Joint Committee on Taxation are presented.

Congressional considerations include proposals to extend, modify, or repeal TCJA provisions, as well as broader tax reform proposals addressing income inequality, capital gains taxation, estate tax policy, and the corporate minimum tax established by the Inflation Reduction Act.