Taxation affects every member of the society directly. It determines people’s level of saving and investment, their standard of living and also hampers or boosts trade. It is important for the government to design and implement tax laws and policies that are centered on improving citizens’ welfare. This paper will discuss the Tax Reforms of December 2017 and compare them with the optimal tax theory and Haig-Simons. According to the Tax Reform bill of 2017, corporate taxes are to reduce from 35% to 21%. There will also be a reduction in personal income taxes for ten years. Additionally, the bill lowered inheritance taxes, as well as the taxes on income and profits earned by residents of the United States. It also retracted the corporate alternative minimum tax and redesigned the way businesses are taxed.