When it comes to the U.S. tax code regarding who gets taxed and how much they pay, our country is divided, primarily along party lines. The Tax Cuts and Jobs Act (TCJA) is no exception. The tax policy which was implemented in 2017 during President Trump’s administration, had the goal of simplifying the U.S. tax code according to Trump. 

The main goal of the TCJA was lowering taxes for business and individuals, as well as making filing taxes a simpler process. Example provisions in TCJA included an increase in the Child Tax Credit amount and qualifications so that higher earning families could begin receiving the credit. The TCJA also raised the threshold of estate taxes so that those taxes do not have to be paid until that new threshold is reached.

For corporations, it reduced the top corporate income tax rate from 35% to 21%, bringing the US rate below the average for most other Organization for Economic Co-operation and Development countries, and eliminated the graduated corporate rate schedule.

While the title of the TCJA implies an overall decrease in taxes, there are provisions that resulted in an increase in taxes for some. For example, homeowners received a lower cap on mortgage interest deduction. Additionally, the TCJA caps state and local tax deductions, further reducing the deductions that are available to citizens.

As it stands, many tax cut provisions will expire in 2025 (ex: income tax) and some have already started. However, most corporate tax cuts provisions are permanent as currently written.

The argument to extend or repeal the TCJA is primarily divided amongst party lines with Democrats pushing for the repeal of the TCJA and Republicans wishing to extend the TCJA. The question for debate is, should the Tax Cuts and Jobs Act be repealed or extended?