The Tax Cuts and Jobs Act: An Appraisal

IMF Working Papers, August 7, 2018

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The Tax Cuts and Jobs Act: An Appraisal

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Bibliographic details

• Authors: Nigel A Chalk, Michael Keen, Victoria J Perry
• Published: August 7, 2018
• Series: IMF Working Papers
• DOI: https://doi.org/10.5089/9781484372548.001

Overview and purpose

• Authors: Nigel A Chalk, Michael Keen, Victoria J Perry
• Date: August 7, 2018
• Type: IMF Working Papers
• Objective: Assess the Tax Cuts and Jobs Act (TCJA) from the perspective of both the U.S. and the wider world, evaluating positive aspects, shortcomings, fiscal implications, and international spillovers.

Key findings

• Positive aspects:
  • Steps to broaden the base of, and reduce marginal rates under, the personal income tax (PIT).
  • Reductions in distortions to investment and financing decisions.
  • Measures that mitigate outward profit shifting.
• Limitations and concerns:
  • The TCJA has a large fiscal price tag.
  • The reform leaves significant uncertainty as to how the U.S. tax system will develop.
  • PIT changes could have better targeted relief at low earners.
  • There is scope to more fully address distortions in business taxation.
• International dimensions:
  • The novel international provisions create a complex array of both positive and negative international spillovers.
  • These provisions have the potential to significantly reshape the wider international tax system.

Policy implications and recommendations

• Target personal income tax relief more effectively toward low earners.
• Further address distortions in business taxation to reduce inefficiencies in investment and financing decisions.
• Carefully monitor and evaluate international provisions for unintended cross-border spillovers and broader impacts on the international tax architecture.

Notable metadata and identifiers

• Pages: 48
• Volume: 2018
• Issue: 185
• Series: Working Paper No. 2018/185
• DOI: https://doi.org/10.5089/9781484372548.001
• Stock No: WPIEA2018185
• ISBN: 9781484372548
• ISSN: 1018-5941
• Citation format (Chicago) provided on page: Nigel A Chalk, Michael Keen, and Victoria J Perry. "The Tax Cuts and Jobs Act: An Appraisal", IMF Working Papers 2018, 185 (2018), accessed 9/18/2026, https://doi.org/10.5089/9781484372548.001

IMF Working Papers — summary and appraisal drawn from the paper "The Tax Cuts and Jobs Act: An Appraisal" (August 7, 2018).

Content in this bundle

• The Tax Cuts and Jobs Act: An Appraisal, WP/18/185, August 2018
  • The Tax Cuts and Jobs Act: An Appraisal, WP/18/185, August 2018 (Markdown version)
  • The Tax Cuts and Jobs Act: An Appraisal, WP/18/185, August 2018 (PDF)