Tag: market power
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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…
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Assessing the Effects of a Dividend and Capital Gains Tax Increase
This brief provides a new analysis of the macroeconomic effects of raising taxes on dividend income and capital gains. Increasing dividend income and capital gains taxes from 20% to 39.6% for households earning over $1 million would raise government revenue by about 5% and GDP by about 1% in the long term. The proposed tax increase…
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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.…