We analytically find that the relationship between the corporate tax rate and the growth rate can be either inverted U-shaped or negative. In our endogenous market structure model, corporate tax cuts make the market more competitive and increase the costs of employing researchers through labor ...
The arguments for both are the same: tax cuts—whether for individuals or corporations—will kickstart economic growth and create jobs at a time when the recovery appears to be stalling. A bi-partisan tax bill making its way through Congress calls for slashing the corporate rate to just 24 p...
The massive corporate tax cuts this year showcased the central government's efforts to inject more energy into economic development and to make sure market entities receive benefits, which will help stabilize market expectations of the economy, according to Bai. Bai believes the move will unleash Ch...
states. Comparing contiguous counties straddling state borders over the period 1970 to 2010, we find that increases in corporate tax rates lead to significant reductions in employment and income. We find little evidence that corporate tax cuts boost economic activity, unless implemented during ...
Most of the change in innovation occurs two or more years after the tax change, and there's no effect before the tax change. Exploring the mechanisms, we show that tax cuts have a stronger impact on innovation for firms with lower pledgeable income: firms with weaker governance, greater ...
The Tax Cuts and Jobs Act didn’t just lower the corporate tax rate — it broadened the tax base, including instituting the first global minimum tax of its kind. With a broader base and a more pro-growth tax code, the Treasury actually collected more revenue than projected. Since the...
A key selling point of the 2017 Tax Cuts and Jobs Act was that it would discourage multinational corporations from funneling billions in profits to offshore tax havens, bringing that money back to the U.S. where it could create jobs and boost economic growth. But a recent analysis concludes...
Amid concerns that large tax cuts would significantly increase U.S. fiscal deficits, Mnuchin on Wednesday reiterated that the administration will count on the compounding effect of strong economic growth over the next decade to finance the tax cuts. ...
Industry con- centration rises as a result, and firm entry falls, consistent with the US experience documented in Kehrig and Vincent (2017) and Autor et al. (2017). Calibration of the model to the US economy indicates that corporate tax cuts explain at least a third of the decline in ...
Corporate tax cuts would be a major windfall for American corporations. For American workers, perhaps not so much.