The U.S. Corporate Tax Reform and Its Macroeconomic Outcomes
| Autor: | Nahid Kalbasi Anaraki |
|---|---|
| Rok vydání: | 2013 |
| Předmět: |
Double taxation
Natural rate of unemployment Labour economics Sociology and Political Science Economics Econometrics and Finance (miscellaneous) Tax reform Value-added tax Tax credit Real gross domestic product Corporate tax hike Productivity growth Natural rate of unemployment Automatic stabilizer Menu cost model Macroeconomic variables Political Science and International Relations Industrial relations Economics Consumer price index Corporate tax |
| Zdroj: | Research in World Economy. 4(1):14-21 |
| Popis: | The corporate tax reform has been among the most controversial issues during the past U.S. presidential debates. Though much has been said about the adverse macroeconomic effects of the corporate tax hike, less attention has been paid to the magnitude of such effects. This study attempts to measure the adverse effects of the corporate tax hike on macroeconomic variables such as investment, real GDP, productivity growth, hourly wages, unemployment rate, natural rate of unemployment, and consumer price index (CPI). The estimated regression results with quarterly data from1960 to 2010suggest that a 10% increase in the effective corporate tax rate reduces private investment by3.1%, real GDP by 1.5%, productivity by 2.6%, and hourly wages by 4%. The results also indicate that this increase in the effective corporate tax rate raises short-term unemployment rate by 0.5%, the natural rate of unemployment by 1%, and the consumer price index (CPI) by 0.9%. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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