Tag: economic growth
-
Redistribution in Reverse: The Macroeconomics of the OBBB with Addendum on the Senate Version
This amended policy brief evaluates the macroeconomic and distributional implications of both the House-passed and Senate-passed versions of the One Big Beautiful Bill (OBBB). The Senate (and final) version is largely similar to the House bill in structure and priorities. Both preserve the core individual income tax provisions of the 2017 Tax Cuts and Jobs…
-
Assessing the Economic Effects of Extending and Increasing the QBI Deduction
The 2017 Tax Cuts and Jobs Act (TCJA) introduced a tax deduction of 20% of qualified business income (QBI) for pass-through businesses. This provision is set to expire at the end of 2025, but Republican lawmakers have proposed both extending it and increasing the deduction to 23%. This brief describes IMPA’s evaluation of the proposal.…
-
Preliminary Estimates of the Macroeconomic Costs of Cutting Federal Funding for Scientific Research
Federal agencies such as NIH and NSF are critical sources of funding for basic and applied scientific research. Recently, many of these agencies have seen their research operations frozen or downsized. This brief describes a new analysis of the macroeconomic costs of cutting federal funding for scientific R&D. The brief finds that budget cuts to…
-
Assessing the Effects of Keeping Top Individual Income Tax Rates Low
The TCJA cut income taxes on top earners from 39.6% to 37%, among other changes. This brief assesses the macroeconomic impact of making the TCJA tax cut on top earners permanent compared to letting it expire and compared to raising it. IMPA’s assessment shows that permanent extension of the TCJA tax cut on top earners…
-
Evaluating the Harris and Trump Corporate Tax Proposals
Vice President Kamala Harris proposes raising the corporate tax rate to 28% from its current 21%, while former President Donald Trump proposes lowering it to 15%. The IMPA model projects that the Harris proposal will modestly increase GDP and government revenue. In contrast, it projects that the Trump proposal will slightly contract GDP and government…
-
New Macroeconomic Model Shows TCJA Corporate Tax Cut was Harmful to the Economy in both Aggregate and Distributional Terms
This brief explains IMPA’s analysis of the corporate tax cuts in the Tax Cuts and Jobs Act (TCJA). IMPA’s analysis accurately predicts the growth in investment, output, jobs, and wages that followed its enactment. This paper builds on the work from IMPA’s series on corporate tax policy. Check our publications page for the latest reports and analysis from IMPA.…