The Tax Cuts and Jobs Act: An Appraisal

Author/Editor:

Nigel A Chalk ; Michael Keen ; Victoria J Perry

Publication Date:

August 7, 2018

Electronic Access:

Free Full Text. Use the free Adobe Acrobat Reader to view this PDF file

Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary:

This paper assesses the landmark Tax Cuts and Jobs Act (TCJA), from the perspective of both the U.S. itself and the wider world. The reform has many positive aspects including steps to broaden the base of, and reduce marginal rates under, the personal income tax (PIT), reduce distortions to investment and financing decisions, and mitigate outward profit shifting. But the TCJA has a large fiscal price tag and leaves significant uncertainty as to how the U.S. tax system will develop. The PIT changes could have better targeted relief at low earners, and there is scope to more fully address distortions in business taxation. The novel international provisions create a complex array of both positive and negative international spillovers, and have the potential to significantly reshape the wider international tax system.

Series:

Working Paper No. 18/185

English

Publication Date:

August 7, 2018

ISBN/ISSN:

9781484372548/1018-5941

Stock No:

WPIEA2018185

Price:

$18.00 (Academic Rate:$18.00)

Format:

Paper

Pages:

48

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