What major change did the Tax Cuts and Jobs Act of 2017 enact for corporate taxes?

The Tax Cuts and Jobs Act of 2017 significantly transformed the landscape of corporate taxation in the United States by instituting a flat corporate tax rate of 21%. This change marked a departure from the previous system that had a progressive tax structure with rates that could reach up to 35%. The 21% rate was designed to simplify tax calculations for corporations and incentivize business investments by providing a more manageable and predictable tax burden.

By establishing this lower flat rate, the Act aimed to enhance the global competitiveness of U.S. corporations and stimulate economic growth. This reduction in the corporate tax rate has been a focal point of discussions regarding corporate tax structures and fiscal policy within the business community and among policymakers.

The other choices do not accurately reflect the key changes made by the Act. For example, the increase to 35% would not align with the intent to reduce the tax burden on corporations. Similarly, while some deductions exist for individuals, the Act did not exclusively add new deductions for individuals nor did it eliminate all deductions for corporations. Instead, it retained many deductions while also limiting or eliminating others in specific areas, but the hallmark was firmly set on the introduction of the flat 21% rate.