Keyword: corporate tax

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US

Tax Proposals

This week's US Economic Experts Panel statements: A) Restoring the top individual federal income tax rate to 39.6% for incomes over $400,000 (from the current 37%) and taxing the capital gains and dividends of taxpayers with income over $1 million at that top rate (instead of the current preferential rate of 20%), with no other associated changes in taxes or spending, would be unlikely to hurt economic growth noticeably. B) Restoring the top tax rate, removing the preferential rate on capital gains and dividends, and raising the corporate tax rate from 21% to 28%, with no other associated changes in taxes or spending, would be likely to lead to a meaningful sustained reduction in fiscal deficits.
Europe

Corporate Tax-Rate Harmonization

This week's IGM European Economic Experts Panel statements: A)   Holding other policies fixed, the average European would be better off if every European country taxed corporate profits at a rate of 20% (based as closely as possible on a common definition of profits). B)   If other policies were held fixed and every European country taxed corporate profits at a common rate of 20%, then reducing that common rate substantially below 20% would make the average European better off.
US

Tax Reform

This week's IGM Economic Experts Panel Statements: A)   If the US enacts a tax bill similar to those currently moving through the House and Senate— and assuming no other changes in tax or spending policy — US GDP will be substantially higher a decade from now than under the status quo. B)    If the US enacts a tax bill similar to those currently moving through the House and Senate— and assuming no other changes in tax or spending policy — the US debt-to-GDP ratio will be substantially higher a decade from now than under the status quo.
US

Tax Reform

This week’s IGM Economic Experts Panel poll statements: A) Eliminating tax deductions for non-investment personal interest expenses (e.g., on mortgages), with reductions in personal tax rates that are both budget neutral and keep the burden of taxes by income group the same, would lead to more efficient financing decisions by individuals. B) Reducing the deductibility of interest expenses for non-financial businesses to equalize the overall tax cost of debt and equity financing, while using the extra revenue to reduce personal and corporate tax rates in a budget neutral fashion that also keeps the burden of taxes the same, would lead to more efficient financing decisions by firms.