Dynamic Estimates of The Macroeconomic Effects of Tax Rate Increases and Other Tax Policy Changes

In a study prepared for the National Association of Manufacturers, the authors use the Diamond–Zodrow computable general equilibrium model of the U.S. economy to simulate the macroeconomic effects of a policy change that would alter the tax system enacted in 2017 under the Tax Cuts and Jobs Act.

Among other changes, the policy analyzed would increase the corporate income tax rate to 28%, reinstate the corporate AMT, eliminate expensing of most depreciable assets and increase the top individual income tax rate to 39.6%.ax