IDEAS home Printed from https://ideas.repec.org/a/aea/jecper/v32y2018i4p73-96.html
   My bibliography  Save this article

Is This Tax Reform, or Just Confusion?

Author

Listed:
  • Joel Slemrod

Abstract

Based on the experience of recent decades, the United States apparently musters the political will to change its tax system comprehensively about every 30 years, so it seems especially important to get it right when the chance arises. Based on the strong public statements of economists opposing and supporting the Tax Cuts and Jobs Act of 2017, a causal observer might wonder whether this law was tax reform or mere confusion. In this paper, I address that question and, more importantly, offer an assessment of the Tax Cuts and Jobs Act. The law is clearly not "tax reform" as economists usually use that term: that is, it does not seek to broaden the tax base and reduce marginal rates in a roughly revenue-neutral manner. However, the law is not just a muddle. It seeks to address some widely acknowledged issues with corporate taxation, and takes some steps toward broadening the tax base, in part by reducing the incentive to itemize deductions.

Suggested Citation

  • Joel Slemrod, 2018. "Is This Tax Reform, or Just Confusion?," Journal of Economic Perspectives, American Economic Association, vol. 32(4), pages 73-96, Fall.
  • Handle: RePEc:aea:jecper:v:32:y:2018:i:4:p:73-96
    Note: DOI: 10.1257/jep.32.4.73
    as

    Download full text from publisher

    File URL: https://www.aeaweb.org/doi/10.1257/jep.32.4.73
    Download Restriction: no

    File URL: https://www.aeaweb.org/articles/attachments?retrieve=r9a1SxYLfx38WibNNQpgzg3XRnkLFuJM
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Max Gillman, 2020. "Income Tax Evasion: Tax Elasticity, Welfare, and Revenue," CERGE-EI Working Papers wp675, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
    2. Scheuer, Florian & Slemrod, Joel, 2020. "Taxing Our Wealth," CEPR Discussion Papers 15481, C.E.P.R. Discussion Papers.
    3. Kalcheva, Ivalina & Pleńćnik, James M. & Tran, Hai & Turkiela, Jason, 2020. "(Un)intended consequences? The impact of the 2017 tax cuts and jobs act on shareholder wealth," Journal of Banking & Finance, Elsevier, vol. 118(C).
    4. Lieberknecht, Philipp & Wieland, Volker, 2019. "On the Macroeconomic and Fiscal Effects of the Tax Cuts and Jobs Act," CEPR Discussion Papers 13629, C.E.P.R. Discussion Papers.
    5. Dorine Boumans & Clemens Fuest & Carla Krolage & Klaus Wohlrabe, 2020. "Expected effects of the US tax reform on other countries: global and local survey evidence," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 27(6), pages 1608-1630, December.
    6. Florian Scheuer & Joel Slemrod, 2021. "Taxing Our Wealth," Journal of Economic Perspectives, American Economic Association, vol. 35(1), pages 207-230, Winter.

    More about this item

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • K34 - Law and Economics - - Other Substantive Areas of Law - - - Tax Law

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aea:jecper:v:32:y:2018:i:4:p:73-96. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael P. Albert). General contact details of provider: https://edirc.repec.org/data/aeaaaea.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.