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The Impact of the Tax Cuts and Jobs Act of 2017 on the US Government Debt

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  • Min Xu

    (College of Business Administration, University of Detroit Mercy,Detroit, MI, USA)

  • Jeanne M. David

    (College of Business Administration, University of Detroit Mercy,Detroit, MI, USA)

  • Suk Hi Kim

    (College of Business Administration, University of Detroit Mercy,Detroit, MI, USA)

Abstract

There have been three major tax cuts in the modern US history: 1) the Tax Cuts and Jobs Act of 2017; 2)theEconomic Growth and Tax Relief Reconciliation Act of 2001; and 3) the Economic Recovery Actof 1981. Each of the first two major tax cuts had increased the federal debt. Just about everybody agrees that US federal debt is on an unsustainable path. Can we afford another major tax cut without trigging a major economic disaster such as the Great Recession of 2007-2009? This article discusses an overview of this new law, the impact of the first two major tax cuts on the federal debt, the impact of the Tax Cuts and Job Acts on the US government debt, and its consequences.

Suggested Citation

  • Min Xu & Jeanne M. David & Suk Hi Kim, 2018. "The Impact of the Tax Cuts and Jobs Act of 2017 on the US Government Debt," International Journal of Finance & Banking Studies, Center for the Strategic Studies in Business and Finance, vol. 7(4), pages 01-09, October.
    • Handle: RePEc:rbs:ijfbss:v:7:y:2018:i:4:p:01-09
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    References listed on IDEAS

    as
    1. Congressional Budget Office, 2010. "The Long-Term Budget Outlook," Reports 21546, Congressional Budget Office.
    2. Congressional Budget Office, 2018. "The 2018 Long-Term Budget Outlook," Reports 53919, Congressional Budget Office.
    3. repec:cbo:report:215461 is not listed on IDEAS
    4. Congressional Budget Office, 2010. "The Long-Term Budget Outlook," Reports 21546, Congressional Budget Office.
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