What Are The Main Tax Cuts In The New Law And How Much Are They Worth?

This new tax law includes some of the biggest changes to the federal tax code in the last thirty years. Some of these massive changes are permanent, some of them are temporary. The changes affect different people in different ways, depending on their income, family size, and employment. Below is a breakdown of the biggest and most consequential changes across the code.


All of the changes made to the individual tax code are temporary and expire at the end of 2025 – except two. Those two permanent changes, using a slower measure of inflation and the repeal of the requirement that everyone have health insurance, will result in long-term tax increases for most lower- and middle-class families. However, in the short term, the most significant changes to the individual tax code are below:

Small Businesses

The biggest change for small businesses is the introduction of the 20 percent pass-through deduction. The deduction is not available to all small businesses, and the benefit would flow mostly to the rich. The ability for individuals to deduct 20 percent of income earned as pass-through income is incredibly complex, and costs $414 billion.


Corporations saw permanent changes to their tax code under the tax plan:

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