A major overhaul of the tax law enacted in 2017 that cut individual and corporate income tax rates, allowed businesses to immediately deduct (expense) the cost of non-real estate investments, exempted much foreign business income from U.S. taxation, created a new deduction for pass-through business income, raised the standard deduction, doubled the child tax credit and eliminated the personal exemption, eliminated or curtailed many itemized deductions (including capping the deduction for state and local taxes), changed the price index used for inflation adjustments, and doubled the threshold for estate taxation, To limit the budgetary cost, expensing phases out starting in 2023 and most of the individual provisions are set to expire at the end of 2025, but the lower corporate tax rate and revised price index are permanent.
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