The Tax Foundation is the nation’s leading independent tax policy research organization. Since 1937, our principled research, insightful analysis, and engaged experts have informed smarter tax policy at the federal, state, and local levels.
The Tax Foundation is the nation’s
leading independent tax policy
research organization. Since 1937,
our research, analysis, and experts
have informed smarter tax policy
at the federal, state, and local
levels. We are a 501(c)(3) nonprofit
©2018 Tax Foundation
Creative Commons CC-BY-NC 4.0
Editor, Rachel Shuster
Designer, Dan Carvajal
1325 G Street, NW, Suite 950
Washington, DC 20005
Making the Tax Cuts and Jobs Act
Individual Income Tax Provisions
• The Tax Cuts and Jobs Act (TCJA) significantly lowered individual income tax
rates and made aspects of the individual income tax code simpler primarily by
reducing the attractiveness of itemizing deductions.
• These individual tax code provisions are all scheduled to expire at the end of
If extended, these provisions would increase long-run GDP by 2.2 percent,
long-run wages by 0.9 percent, and add 1.5 million full-time equivalent jobs.
If extended, these provisions would decrease federal revenue on a static basis
by $638 billion over the 2019-2028 budget window, while on a dynamic basis,
extending these provisions would lead to a loss of $576 billion in revenue over
the same window.
In the long run these provisions would reduce federal revenue by $165 billion
annually on a conventional basis and $112 billion dynamically.
• The distributional impact of making the individual side of the TCJA
permanent would mean a roughly 1.5 percent increase in after-tax income for
every income quintile.
Economist and Director,
Center for Quantitative Analysis
TAX FOUNDATION | 2
The TCJA featured, on the individual income tax side, broad marginal rate cuts and the curbing
or elimination of several deductions, along with the expansion of some tax credits. Some of the
most prominent changes in the TCJ