The new U.S. tax law is surprisingly unpopular. According to a New York Times survey, only one-third of Americans think their taxes will go down in 2018 as a result of the new tax law. These pessimists are wrong. Almost every household will pay less in tax. And over time the corporate tax reforms will lead to more capital accumulation, higher productivity, and higher real wages, raising pre-tax incomes as well as lowering the share of incomes taken in taxes.
Why the Pessimists Are Wrong About the New U.S. Tax Law
It will lead to more investment, higher productivity, and higher wages.
January 26, 2018
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Summary.
The new tax law is surprisingly unpopular. According to a New York Times survey, only one third of Americans think their taxes will go down in 2018 as a result of the new tax law. These pessimists are wrong. Almost every household will pay less in tax. And over time the corporate tax reforms will lead to more capital accumulation, higher productivity, and higher real wages, raising pre-tax incomes as well as lowering the share of incomes taken in taxes.