Question 37 Prior to passage of the Tax Cuts and Jobs Act, most large corporations faced a 35% marginal tax rate. Under the new tax law, the marginal tax rate is 21%. In terms of the effect of this tax change on a firm's decision to purchase assets that it will use for several years the tax law reduces the tax benefits that a firm obtains when it acquires long-lived assets, whether it immediately deducts the full cost of those assets or depreciates the cost over time the tax change increases the tax benefits that the firm obtains when it acquires long-lived assets, whether it immediately deducts the full cost of those assets or depreciates the cost over time the tax change is beneficial because it lowers the after-tax cost of these assets the tax change has no effect because depreciation does not affect a firm's cash flow