Question

"An Analysis of the Tax Cuts and Jobs Act of 2017 2-3 Pages 5 Primary sources

Interesting and Informative

Use quotes from thought leaders, properly referenced
DO NOT CUT AND PASTE- USE YOUR OWN BRILLIANT WORDS Provide a reference page.

Answer 1

Tax cut means reduction in the rates of tax payable to Govt. On December 2017, Donald Trump signs the Tax Cut and Job Cut act(TCJA). Thereby it reduces the corporate tax to 21% from 35% beginning in 2018 and also it doubles the standard deduction.TCJA makes more changes on individual income tax and estate tax. These will be expired at or before the end of 2025 unless noted.

From 2019, TCJA sets the affordable Care act's individual mandate penalty to zero. Previously it is 2.5%.

TCJA doubles the estate tax exemption to$11.2 million for single filers and $22.4 million for couples and remaining are same.

TCJA made many changes in the treatment of Foreign source income and International Financial flows.

In short run, tax cuts can raise of GDP by increasing demand. It estimates ranging between 0.3 to 0.9 percent on average of first three years. It raises the size of economy relative to potential output but does not increase it.

There are several ways to measure impact of TCJA on the aggravate economy.

The increases in GDP itoffs to some degree the revenue loses of TCJA under conventional scoring, but do not come close to making the tax cuts sells financing.