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Category: Case Study

Subcategory: Economics

Level: High School

Pages: 1

Words: 275

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The analysis focuses on table 7 which summarizes the economic impacts associated with the Tax Cuts and Job Act if the federal tax is to be made permanent. From a consumer or a worker perspective, this is the most important part of the entire bill. It helps the end user or the citizens to understand how the enactment of the law will impact their lives. Since this is a table, it has columns and rows. The first column contains items that will be affected by the Tax Cuts and the Job Act while the second column entails the percentage effect.
From the table, it can be established that there is a considerable change in impact percentages including; at long-run, GDP will significantly change, capital stock and wage rate. It is also projected that there will be an equivalent job creation that will be on a full-time basis (Tax Foundation, 2018). Though the bill has not been permanently passed; however, it has been given a timeline of seven years with a deadline set at 12/31/2025. Although the cost of the plan is projected to be high, the economy is a target to grow significantly following an increase in the revenue raised upon the implementation of this plan. It is, therefore, evident that the effect of these economic effects will be felt at the long-run. If the plan is enacted permanently, the GDP at the long-run will increase by 1.7 %; capital stock will increase by 4.8%, wages by 1.5%, and consequently will create an estim…

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