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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
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Tax Reform Isn’t Done
In December 2017, Congress passed the Tax Cuts and Jobs Act (TCJA),
arguably the most significant piece of tax legislation in three decades.
However, there remains more work to be done on improving the U.S. tax
• A number of major provisions in TCJA are scheduled to expire over the
next eight years. Many of the expiring provisions should instead be made
permanent, ideally sooner rather than later. At the same time, lawmakers
should also take the opportunity to evaluate which portions of TCJA ought to
In 2021 and 2022, several policy changes are scheduled to take place which
would raise taxes on U.S. business investment. Lawmakers should consider
options to avert or modify these scheduled tax increases.
In 2025, most of the individual income tax changes in TCJA are set to expire.
When deciding which of these to make permanent, Congress should prioritize
those that broaden the individual income tax base, as well as those that make
the tax code simpler and more neutral.
• More broadly, TCJA did not address every area of the federal tax code in
need of reform. In the future, lawmakers should scale back remaining tax
expenditures, reform the tax treatment of household saving, and provide
greater cost recovery for structures.
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When it comes to reforming the federal tax code, there is still more work to be done.
The Tax Cuts and Jobs Act (TCJA), enacted in December 2017, made several sign