Congressional Budget Office

'Tax justice' critical to social stability, economic progress

'Tax justice' critical to social stability, economic progress

In the week before Christmas 2017, a Republican Congress passed the Tax Cuts and Jobs Act. The first major tax law overhaul since 1986, it was totally partisan, done behind closed doors with little debate or Democratic participation. The IRS was stuck with clarifying the hastily written legislation, promulgating regulations and scrambling to put the law into effect.

The new tax law made small cuts in rates for most individual taxpayers until 2025. The most consequential tax cuts, however, went to corporations and these are largely permanent cuts. Corporate rates dropped from 35 percent to 21 percent. Corporations did not lose their existing loopholes and carve-outs. They also...

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