TaxProf Blog

Editor: Paul L. Caron, Dean
Pepperdine University School of Law

Wednesday, October 10, 2018

Rosenberg Presents The Tax Cuts And Jobs Act And Investment Incentives Today At Penn

RosenbergJoseph Rosenberg (Tax Policy Center) presents The Tax Cuts and Jobs Act and Investment Incentives at Pennsylvania today as part of its Tax Law and Policy Workshop Series hosted by Michael Knoll, Chris Sanchirico, and Reed Shuldiner:

This paper estimates the impact of the Tax Cuts and Jobs Act (TCJA) on incentives to invest in the US as measured by the marginal effective tax rate (METR)—a summary measure of the total federal tax burden on a hypothetical break-even investment. In the near term (2018 law), the TCJA reduces the overall marginal effective tax rate (METR) on new investments from 17 percent to 13 percent, a 4.1 percent increase in the aftertax return. In the longer-term (2027 law), the METR decreases from 19 percent to 17 percent, a 1.5 percent increase in the after-tax return.

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