This US survey examines (a) All else equal, making permanent the 2017 tax cuts that were set to expire at the end of 2025 would substantially increase federal deficits and the federal debt over the coming decade; (b) All else equal, making permanent the 2017 tax cuts that were set to expire at the end of 2025 would measurably increase the rate of US economic growth over the coming decade, (c) In the US, given Congressional budget scoring rules, temporary tax cuts generate sufficient pressure for extension as to be effectively permanent
Keyword: tax incentives
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This US survey examines (a) US GDP is substantially higher now as a result of the passage of the TCJA than it would have been had the TCJA not been passed, and all else was equal; (b) Corporate capital stock is substantially higher now as a result of the passage of the TCJA than it would have been had the TCJA not been passed, and all else was equal; (c) Real median wages are substantially higher now as a result of the passage of the TCJA than they would have been had the TCJA not been passed, and all else was equal; (d) Federal tax revenues are substantially lower now as a result of the passage of the TCJA than they would have been had the TCJA not been passed, and all else was equal; (e) Charitable donations are substantially lower now as a result of the passage of the TCJA than they would have been had the TCJA not been passed, and all else was equal.
Shifting the burden of municipal property taxes towards land and away from improvements such as buildings - as proposed in the Detroit land value tax plan - will enhance the incentives for owners to develop their land and thereby give a substantial boost to local economic growth over a ten-year horizon.
This Finance survey examines (a) Large-scale stock buybacks by public corporations provide short-term rewards for shareholders and senior executives at the expense of potentially higher-return corporate investments; (b) The proposed higher tax on corporate stock buybacks (an increase from 1% to 4%) would generate substantial public revenues; (c) The proposed higher tax on corporate stock buybacks would generate a substantial increase in corporate investment
This European survey examines (a) Loosening regulations on state aid to allow targeted incentives for companies in certain sectors will substantially improve the EU’s relative attractiveness for corporate investment; (b) Loosening regulations on state aid will give a substantial advantage to the economies of EU members with stronger public finances; (c) Even if looser regulations on state aid are temporary, they risk permanent damage to the EU’s longstanding competition policy regime
This European survey examines (a) Without government intervention, take-up of electric vehicles will be substantially less than is desirable to reduce carbon emissions; (b) To encourage greater take-up of electric vehicles, public expenditure on infrastructure to support them (such as charging stations) is likely to be more cost-effective than providing equivalent amounts as tax credits/purchase rebates for buyers
This week's European Economic Experts Panel statements:
A) A wealth tax would be an effective way to reduce inequality.
B) A wealth tax in a form discussed in the UK (where individuals could be taxed a percentage of their net worth over £750,000, excluding any personal pension savings and their main home) would be an effective way to improve public finances after the Covid-19 crisis.
C) A public policy goal that could be accomplished with a well-enforced wealth tax could be accomplished at lower cost with modifications to existing taxes, such as income tax, capital gains tax, inheritance tax and property tax.
This week’s IGM Economic Experts Panel statement:
Providing state and local subsidies to build stadiums for professional sports teams is likely to cost the relevant taxpayers more than any local economic benefits that are generated.
This week's IGM European Economic Experts Panel statements:
A) Giving tax incentives to specific firms to locate operations in a country typically generates domestic benefits that outweigh the costs to the country providing the incentives.
B) Europe as a whole benefits when European cities or countries compete with each other by giving tax incentives to firms to locate operations in their jurisdictions.
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