What are the economic effects of the Tax Cuts and Jobs Act? Q.What are the economic effects of the Tax Cuts and Jobs Act? A.Most analysts expected the Tax Cuts and Jobs Act to boost economic output modestly in both the short and the longer run. So far, the evidence supports the prediction for the short run. It is too soon to tell about the longer run but as yet there is little evidence of a strong effect on investment that could lead to higher longer-run growth. Read more about What are the economic effects of the Tax Cuts and Jobs Act?
How do taxes affect income inequality? Q.How do taxes affect income inequality? A.Because high-income households pay a larger share of their income in total federal taxes than low-income households, federal taxes reduce income inequality. But federal taxes have done little to offset increasing income inequality over the past 40 years. Read more about How do taxes affect income inequality?
What are dynamic scoring and dynamic analysis? Q.What are dynamic scoring and dynamic analysis? A.Tax, spending, and regulatory policies can affect incomes, employment, and other broad measures of economic activity. Dynamic analysis accounts for those macroeconomic impacts, while dynamic scoring uses dynamic analysis in estimating the budgetary impact of proposed policy changes. Read more about What are dynamic scoring and dynamic analysis?
