Select the correct statement.

The tax cuts of 2018 were done when the U.S. economy was declining and in a recession.

In addition to reducing corporate and individual tax rates, the 2018 tax cuts also reduced the federal budget deficit.

The statutory corporate tax rate is the legal tax rate set by law; the effective corporate tax rate is the rate that a company actually pays on pre-tax profits.

A 2019 study by the Institute on Taxation & Economic Policy found that the 2018 effective tax rate for the majority of firms included in the Fortune 500 was significantly higher than the statutory rate of 21%.