Table:
|  |  | Fiscal year end |  |
| --- | --- | --- | --- |
|  | June 1, 2019 | June 2, 2018 | June 3, 2017 |
| Statutory federal income tax (benefit) | $14,694 | $34,105 | $(39,950) |
| State income tax (benefit) | 2,164 | 3,200 | (3,193) |
| Domestic manufacturers deduction | — | (2,545) | 4,095 |
| Enacted rate change | — | (42,973) | — |
| Tax exempt interest income | (197) | (101) | (206) |
| Other, net | (918) | (545) | (613) |
|  | $15,743 | $(8,859) | $(39,867) |
Paragraphs:
The differences between income tax expense (benefit) at the Company’s effective income tax rate and income tax
expense at the statutory federal income tax rate were as follows:
In December 2017, the President of the United States signed into law the Tax Cuts and Jobs Act of 2017 (the “Act”), which among other matters reduced the United States corporate tax rate from 35% to 21% effective January 1, 2018. In fiscal 2018, the Company recorded a $43 million tax benefit primarily related to the remeasurement of certain deferred tax assets and liabilities.
Federal and state income taxes of $36.5 million, $2.1 million, and $3.7 million were paid in fiscal years 2019, 2018, and 2017, respectively. Federal and state income taxes of $418,000, $47.2 million, and $17.6 million were refunded in fiscal years 2019, 2018, and 2017, respectively.
The Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The Company measures the tax benefits recognized based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate resolution. As of June 1, 2019, there were no uncertain tax positions that resulted in any adjustment to the Company’s provision for income taxes.
We are under audit by the IRS for the fiscal years 2013 through 2015. We are subject to income tax in many jurisdictions within the U.S., and certain jurisdictions are under audit by state and local tax authorities. The resolutions of these audits are not expected to be material to our consolidated financial statements. Tax periods for all years beginning with fiscal year 2013 remain open to examination by federal and state taxing jurisdictions to which we are subject.
Question:
What was the Tax Cuts and Jobs Act of 2017 (the “Act”)?
Answer: reduced the United States corporate tax rate from 35% to 21% effective January 1, 2018