New Macroeconomic Model Shows TCJA Corporate Tax Cuts were Harmful to the Economy in both Aggregate and Distributional Terms

This brief explains a new analysis of the corporate tax cuts in the Tax Cuts and Jobs Act (TCJA) by the Institute for Macroeconomic and Policy Analysis (IMPA). The brief shows that the IMPA model would have outperformed existing models in analyzing TCJA by correctly predicting the anemic growth in investment, output, jobs, and wages that followed its enactment.