Tax cuts in the United States Business & Marketing Essay (Essay Sample)

The Tax Cuts and Jobs Act of 2017 (TCJA)
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The Tax Cuts and Jobs Act of 2017 (TCJA)
The Tax Cuts and Jobs Act of 2017 (TCJA) introduced various changes to business, individual, and international tax system. Some of these changes were driven by the concerns raised on the economic unfairness, inefficiency, and complexity of the federal tax system (Wagner et al., 2020). For instance, personal exemptions eliminated and replaced with a larger standard deduction. However, the current tax system still remains largely complex, limiting the taxpayers’ capacity to understand and comply with the laws regulation tax and taxation. In addition, TCJA instituted major changes that resulted in reduction of tax revenues. As a result, the increasing imbalance between spending and revenue in the country has increased. The imbalance has further being heightened by the response of the country towards the coronavirus pandemic. The criteria that were used in evaluating policy provisions and drawing a comparison between tax proposals include efficiency, fairness, transparency, simplicity, and administrability (Mertens, 2018). However, there is a conflict between the criteria, creating the need for tradeoffs. This has also raised a debate among policymakers who advocate tax reforms. Besides the current tax system having various advantages and disadvantages, various approaches can be taken to improve its efficiency and achieving optimal taxation.