The centerpiece of the Act, which became effective on January 1, 2018, is a permanent reduction to the corporate income tax rate from a maximum rate of 35% to a flat rate of 21%.  Congress intends this change to make the U.S. tax system more competitive with other nations.  Because the Act repealed or modified a number of existing provisions (e.g., limits on like-kind exchanges and interest expense deductions), the overall impact on businesses is less clear.  In addition to permanently lowering corporate tax rates, for tax years 2018 through 2025, the law provides a temporary 20% taxable income deduction for owners of pass through entities (e.g., S-Corporations), subject to numerous limitations.  A pass-through entity’s taxable business income is taxed at the individual owner’s rate with a maximum rate of 37%, but when the 20% deduction is applied, this can lower the tax rate to 29.6%.  The new rates may affect business structuring and choice-of-entity options, and decision makers should also consider state income tax implications.