Summarize The Tax Cuts and Jobs Act (TCJA) significantly raised the standard deduction for all taxpayers. For single filers, it increased from $6,350 to $12,000, for heads of households from $9,350 to $18,000, and for married couples from $12,700 to $24,000. The TCJA also eliminated the personal and dependent exemption, which previously allowed taxpayers to deduct $4,050 for each taxpayer, spouse, and dependent. This increased standard deduction reduces the amount of tax owed. For instance, a filer with a taxable income of $40,000 would now pay $4,369 in taxes instead of $5,369, saving $1,000. These changes aim to simplify tax preparation and encourage more people to take the standard deduction rather than itemizing deductions. The increased standard deductions could positively impact the economy by boosting consumer spending, benefiting businesses, and creating jobs due to the extra money saved by taxpayers.