skip to Main Content

Dicussion ( Principle Of Economics) SJ Week 8 Exploring Tax Cuts, Jobs, and Tax

Please note that this is just a preview of a school assignment posted on our website by one of our clients. If you need assistance with this question too, please click on the Learn More button at the bottom of the page to get started.

Dicussion ( Principle Of Economics) SJ Week 8
Exploring Tax Cuts, Jobs, and Tax Revenue
There has been discussion about whether the Tax Cuts and Jobs Act that took effect in 2018 will increase tax revenue. Tax revenue can be thought of an as average tax rate multiplied by taxable income. If the average tax rate falls while taxable income stays the same, tax revenue will fall. But what if the tax cuts increase taxable income? Both of the major schools of thought in macroeconomics (Keynesians and Neoclassicals) believe that tax cuts increase economic growth. Economic growth increases taxable income. Our recent economic growth has brought unemployment down to historically low levels.
Think about this. Reply to these questions to begin your discussion:
Do you think that the tax cuts of the Tax Cuts and Jobs Act will increase economic growth and taxable income so much that tax revenue will increase?
Or do you think that the tax cuts will reduce tax revenue? Explain your answers.

Get Help Today

Struggling with this particular assignment? Learn how our team of professional writers can help you today.

Leave a Reply

Your email address will not be published. Required fields are marked *