How do financing methods affect the distributional analyses of tax cuts? Q.How do financing methods affect the distributional analyses of tax cuts? A.Tax cuts are financed through reductions in current outlays or higher government debt that will eventually have to be repaid. Distributional analyses omit this information as well as the effects of tax increases on current outlays and debt. Read more about How do financing methods affect the distributional analyses of tax cuts?
How might the Tax Cuts and Jobs Act affect economic output? Q.How might the Tax Cuts and Jobs Act affect economic output? A.The Tax Cuts and Jobs Act will likely boost economic output modestly in both the short and the longer run, but not all those gains will flow to the incomes of Americans. Read more about How might the Tax Cuts and Jobs Act affect economic output?
What criticisms are levied against standard distributional analysis? Q.What criticisms are levied against standard distributional analysis? A. Economists disagree on which taxes to include, how to measure tax burdens, what to assume about tax incidence, how to measure income, what period of analysis to use, and whether to include outlays in the calculations. Read more about What criticisms are levied against standard distributional analysis?
