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There is no consensus on how strongly the Tax Cuts and Jobs Act (TCJA) has stimulated U.S. private fixed investment. Some argue that the business tax provisions spurred investment by cutting the cost of capital. Others see the TCJA primarily as a windfall for shareholders. We find that U.S. business investment since 2017 has grown strongly compared to pre-TCJA forecasts and that the overriding factor driving it has been the strength of expected aggregate demand. Investment has, so far, fallen short of predictions based on the postwar relation with tax cuts. Model simulations and firm-level data suggest that much of this weaker response reflects a lower sensitivity of investment to tax policy changes in the current environment of greater corporate market power. Economic policy uncertainty in 2018 played a relatively small role in dampening investment growth.
The November 1994 midterm elections were a watershed event, making possible a Repbulican majority in Congress for the first time in forty years. Contract with America, by Newt Gingrich, the new Speaker of the House, Dick Armey, the new Majority Leader, and the House Republicans, charts a bold new political strategy for the entire country. The ten-point program, which forms the basis of this book, was announced in late September. It received the signed support of more than 300 GOP canditates. Their pledge: "If we break this contract, throw us out". Contract with America fleshes out the vision and provides the details of the program that swept the GOP to victory. Among the pressing issues addressed in this important book are: balancing the budget, stopping crime, reforming welfare, reinforcing families, enhancing fairness for seniors, strengthening national defense, cutting government regulations, promoting legal reform, considering term limits, and reducing taxes.
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This new and updated edition of The Flat Tax—called "the bible of the flat tax movement" by Forbes—explains what's wrong with our present tax system and offers a practical alternative. Hall and Rabushka set forth what many believe is the most fair, efficient, simple, and workable tax reform plan on the table: tax all income, once only, at a uniform rate of 19 percent.