New Macroeconomic Model Shows TCJA Corporate Tax Cut was Harmful to the Economy in both Aggregate and Distributional Terms

New Macroeconomic Model Shows TCJA Corporate Tax Cut was Harmful to the Economy in both Aggregate and Distributional Terms
by Lídia Brun, Ignacio González, and Juan Antonio Montecino

This brief explains IMPA’s new analysis of the corporate tax cuts in the Tax Cuts and Jobs Act (TCJA), showing that the IMPA model would have outperformed existing models in analyzing TCJA by correctly predicting the anemic growth in investment, output, jobs, and wages that followed its enactment.