IMF Working Papers

The Tax Cuts and Jobs Act: An Appraisal

By Nigel A Chalk, Michael Keen, Victoria J Perry

August 7, 2018

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Nigel A Chalk, Michael Keen, and Victoria J Perry. The Tax Cuts and Jobs Act: An Appraisal, (USA: International Monetary Fund, 2018) accessed November 8, 2024

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.

Subject: Corporate income tax, Income and capital gains taxes, Income tax systems, National accounts, Personal income, Personal income tax, Taxes

Keywords: Business income, Business Tax, Cash flow, Corporate income tax, GILTI income, GILTI provision, Global, Income and capital gains taxes, Income tax, Income tax systems, Intangible income, International Taxation, Multinational company, Net effect, Pass-throughs, Personal income, Personal Income Tax, Rate of return, Standard deduction, Tax liability, Tax Policy, Tax revenue, Tax system, Taxable income, U.S corporation, WP

Publication Details

  • Pages:

    48

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 2018/185

  • Stock No:

    WPIEA2018185

  • ISBN:

    9781484372548

  • ISSN:

    1018-5941

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