Answer:

• Capital losses incurred make it difficult for the investors to recuperate as only a part of losses can be offset against other sources of income on the income tax return. Wash Sale rules recently introduced also have impacts on allowance of capital losses as deductions.
• As The Tax Cut and Jobs Act came into existence, the average tax cut was $1200, which is remarkable to some extent. It is also said that the new code has not lived up the storm of hype surrounding it as the new code supports the corporate sector more than the individual taxpayers. The effect of changes in the current code from the former one depends upon the personal situation of the taxpayer. The main difference in previous and current tax law is that the former tax laws levied 35% corporate tax, however, the Tax Cut & Jobs Act lowered the corporate tax to 21%.
• As to the personal investment decisions post Tax Cut Jobs Act, investment in equity is preferred to bonds for personal investment decisions. 

Step-by-step explanation

• Capital losses incurred by the taxpayer can be netted against any capital gain earned in that year to any extent. When it comes about netting off any capital losses with any other type of income of the year, the netting off can be done only to the extent of $3000. Any unused capital losses can be used to net off with the other income in the future years upto $3000 per year and with the capital gain to any extent. Also, wash sale rules were established wherein investors can claim deductions of capital losses incurred due to liquidating losing positions only if they do not buy back the securities for at least 31 days. This rule is having a large impact on highly risky volatile stock wherein price can change a lot after 31 days. Both the aforementioned rules discourage the individual investors from purchasing stock of a high-risk start-up company as:
  • The capital losses have a restriction of utilizing it for setting off with the capital gains or other sources of income.
  • In case of selling off high risk start up shares at loss, the taxpayer can not buy back the shares for 31 days which reduces the possibility of regaining the shares at the expected prices as the share prices of high risk start up companies can be volatile.
• The Tax Cuts and Jobs Act affected tax payments for the taxpayers from 2018 and the same shall be lasting through 2025. The income tax burden got reduced due to lower tax rates. The benefit of this Act reached nearly everyone in America but the effects were based on personal and business situations. The prominent changes in The Tax Cut and Jobs Act are as follows:
  • Permanent reduction of top corporate tax rate from 35% to 21%.
  • Allowance of 20% deduction with certain limitations to Partnership & Pass-Through Entities.
  • Temporary reduction in Individual Ordinary Income Tax Rates.
  • There is no change in Long-Term Capital Gains & Qualified Dividends.
  • Taxable Interest Income & Short-Term Capital Gains remains unchanged.
  • Carried Interest is unchanged.
  • Corporate Alternative Minimum Tax got eliminated permanently.
  • There is an increase in exemptions for Individual Alternative Minimum Tax.
  • The Standard Deduction has increased through 2025 to:  $12,400 (2020) for single taxpayers and $24,800 (2020) for joint filers      
  • Personal Exemptions are eliminated for taxpayers, their spouses and dependents.
  • Section 682 Support Trusts also got eliminated.

The U.S. 10-year Treasury note's yield has been increasing due to the upcoming of the current tax law, and inflation is expected to rise too. The upward trend of rates can provoke equity market swings. With the higher interest rates and increased inflation rate, the prices of equity might be affected but the earnings on the equity is expected to rise. Hence, equity over bond is still preferred for personal investment decisions.

References:

https://www.investopedia.com/articles/investing/062713/capital-losses-and-tax.asp

https://www.investopedia.com/taxes/trumps-tax-reform-plan-explained/

https://www.bnymellonwealth.com/articles/strategy/the-tax-cuts-and-jobs-act-key-changes-and-their-impact.jsp