Thursday, November 23, 2017

Corporate Tax Cuts Increase Investment

This from Tyler Cowen:
I think the currently circulating versions of the tax plan are unwise. They increase the deficit too much, don’t have the right kind of distributional consequences to prove stable, and they might eliminate the Obamacare mandate without a planned stabilizing replacement. Those and other more technical reasons are enough to bring at least parts of these proposed laws back to the drawing board.
But when the critics allege that corporate tax rate cuts won’t boost investment, that’s going against basic economics.