IDEAS home Printed from https://ideas.repec.org/a/ucp/nattax/doi10.1086-717132.html
   My bibliography  Save this article

The Tax Cuts and Jobs Act: Searching for Supply-Side Effects

Author

Listed:
  • William G. Gale
  • Claire Haldeman

Abstract

The Tax Cuts and Jobs Act of 2017 (TCJA) instituted the most substantial changes in taxation in decades and was designed to boost the economy via supply-side incentives. This paper reviews these changes and examines the impacts on economic aggregates through 2019. The act clearly reduced revenue. The effect on gross domestic product is difficult to tease out of the data. Investment growth rose after the TCJA was enacted, but it was driven by trends in aggregate demand, oil prices, and intellectual capital that were unrelated to the TCJA’s supply-side incentives. Growth in business formation, employment, and median wages slowed after the TCJA was enacted. International profit shifting fell only slightly, and the boost in repatriated profits primarily led to increased share repurchases rather than new investment.

Suggested Citation

  • William G. Gale & Claire Haldeman, 2021. "The Tax Cuts and Jobs Act: Searching for Supply-Side Effects," National Tax Journal, University of Chicago Press, vol. 74(4), pages 895-914.
  • Handle: RePEc:ucp:nattax:doi:10.1086/717132
    DOI: 10.1086/717132
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1086/717132
    Download Restriction: Access to the online full text or PDF requires a subscription.

    File URL: http://dx.doi.org/10.1086/717132
    Download Restriction: Access to the online full text or PDF requires a subscription.

    File URL: https://libkey.io/10.1086/717132?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Thi, Hoang Ha Nguyen & Weichenrieder, Alfons J., 2021. "C and S corporation banks: Did Trump's tax reform lead to differential effects?," SAFE Working Paper Series 328, Leibniz Institute for Financial Research SAFE.
    2. Ana Maria Santacreu & Ashley Stewart, 2024. "The Impact of the 2017 Tax Cuts and Jobs Act on U.S. Multinationals’ Intangible Assets," Working Papers 2024-020, Federal Reserve Bank of St. Louis.
    3. Blind, Knut & Münch, Florian, 2024. "The interplay between innovation, standards and regulation in a globalising economy," LSE Research Online Documents on Economics 122260, London School of Economics and Political Science, LSE Library.
    4. Junwook Yoo, 2023. "Progressive tax and responsiveness to changes in investment projects: no loss offset," Economics Bulletin, AccessEcon, vol. 43(2), pages 1016-1026.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ucp:nattax:doi:10.1086/717132. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Journals Division (email available below). General contact details of provider: https://www.journals.uchicago.edu/NTJ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.