# Plain Language Summary: TCJA Permanency Act

The Tax Cuts and Jobs Act was passed in 2017 and made major changes to how Americans pay taxes. However, most of those changes were set to expire at the end of 2025, meaning tax rates would go back to what they were before. This bill makes those changes permanent so they don't disappear.

Here's what would stay in place if this bill passes: Tax rates for individuals would remain lower than they were before 2017. For example, married couples filing jointly would continue paying 10% on their first chunk of income, then 12%, 22%, 24%, and so on, up to a top rate of 37% for the highest earners. The standard deduction—the amount you can earn without paying taxes—would stay higher than it used to be. The child tax credit would remain at $2,000 per child. People who own small businesses structured as partnerships or sole proprietorships would keep a special deduction allowing them to deduct up to 20% of their business income. The bill also keeps higher exemptions for the alternative minimum tax, which is a separate tax calculation that affects higher-income people.

The bill also makes permanent some other tax benefits, including expanded limits on charitable donations, changes to education savings accounts (529 plans), and higher exemptions for estate and gift taxes—the taxes that apply when wealthy people pass money to heirs. It eliminates some deductions that were previously available, like the personal exemption deduction and certain miscellaneous business deductions.

Essentially, this bill locks in the 2017 tax changes rather than letting them expire. If you've been paying lower taxes since 2017, this bill would mean you'd continue paying at those same rates indefinitely instead of seeing your taxes increase in 2026.