About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline

1 Huaqun Li & Kyle Pomerleau, The Distributional Impact of the Tax Cuts and Jobs Act over the Next Decade 1 (2018)

handle is hein.taxfoundation/dtrbitx0001 and id is 1 raw text is: 


The Distributional Impact of the

Tax Cuts and Jobs Act over the

Next Decade


FISCAL
FACT
No. 596
June 2018


Huaqun   Li
Economist


Kyle Pomerleau
Economist and
Director, Center for Quantitative Analysis


The Tax Foundation is the nation's
leading independent tax policy
research organization. Since 1937,
our research, analysis, and experts
have informed smarter tax policy
at the federal, state, and local
levels. We are a 501(c)(3) nonprofit
organization.
@2018 Tax Foundation
Distributed under
Creative Commons CC-BY NC 4.0
Editor, Rachel Shuster
Designer, Dan Carvajal
Tax Foundation
1325 G Street, NW, Suite 950
Washington, DC 20005
202.464.6200
taxfoundation.org


Key Findings

  *   The Tax Cuts and Jobs Act (TCJA) made changes to both the individual
      income and corporate income tax, while scaling back the estate and gift tax.

  *   Over the next decade, we estimate that the TCJA will reduce federal
      revenues by about $1.8 trillion on a conventional basis. In addition, we
      estimate that the economy would be about 2 percent larger on average than
      it otherwise would have been between 2018  and 2027.

  *   Lower tax liabilities and higher output will boost taxpayer after-tax income,
      but the impact will differ over time due to many provisions phasing in or
      expiring over the next decade.

  *   Using the Tax Foundation model, we estimate the distributional impact of the
      TCJA for each year over the next decade (2018-2027) on both a conventional
      and dynamic basis.

  *   On a conventional basis, the TCJA would result in an increase in after-tax
      income for taxpayers in all income groups from 2018 to 2025.

  *   In 2026 and 2027, the expiration of the individual income tax cuts will result
      in a reduction of after-tax income for taxpayers in all income groups relative
      to prior law on a conventional basis.

  *   On a dynamic basis, the larger economy will result in higher after-tax incomes.
      However, the economic  impact of the TCJA will be modest in the first few
      years but increase as the economic effects phase in over time.

What Is HeinOnline?

HeinOnline is a subscription-based resource containing nearly 3,000 academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Contact us for annual subscription options:

Already a HeinOnline Subscriber?

profiles profiles most