How Terrible Is the New Tax Law? Reflections on TRA17
7 Pages Posted: 5 Jan 2018 Last revised: 22 Mar 2018
Date Written: January 2, 2018
Overall, TRA17 is not much worse than TRA86 or TRA14. It increases the deficit, but not by an impossible amount; it is distributionally skewed, but less so than is usually assumed; and its details are not terrible (on the international side they are a big improvement over prior law). There is one big problem, the pass through provisions, and we can only hope that as its horrible implications unfold it will be a prime candidate for repeal.
Keywords: Tax reform, TCJA
JEL Classification: H26
Suggested Citation: Suggested Citation