Ep. 81: Assessing the Effects of the 2017 Tax Cut and Jobs Act
Release Date: 11/20/2024
Ep. 86: Reexamining air quality regulations
AEA Research Highlights
The Clean Air Act has been an essential tool for reducing air pollution in the United States. But standard estimation methods may overstate its impact, according to a . Authors and reexamined the 2005 regulations targeting fine particulate matter (PM2.5) and found that improvements in air quality were closer to a 3 percent reduction in pollutants rather than the 10 percent suggested by conventional methods. However, they also found that the benefits from cleaner air may be larger than previous estimates suggested. Sager and Singer recently spoke with Tyler Smith about methods for...
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Ep. 85: America’s public safety net
AEA Research Highlights
The patchwork nature of America's public safety net has evolved over centuries, shaped by political winds and changing views on poverty. Understanding this complicated history may help shed light on the core tensions that continue to define debates about who deserves assistance and how it should be provided. In a , author explored how programs targeted at people with low incomes expanded from meager, local support in colonial times to the large-scale programs of today. He draws a distinction between two parallel systems: means-tested programs targeted specifically at low-income Americans...
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Ep. 84: Media salience and polarization
AEA Research Highlights
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Ep. 83: The returns to industrial policy
AEA Research Highlights
Between 2006 and 2013, China’s government poured enormous resources into its shipbuilding industry through various subsidies—from providing free coastal land to offering financing assistance for ship buyers. But estimating the true scale and impact of these policies is challenging, as governments are often opaque about their industrial support programs. In a , authors , , and developed new methods for overcoming these measurement challenges and quantifying China’s support for its shipbuilding industry. Their research reveals which types of industrial policies work best, when...
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Ep. 82: Service quality in the financial advisory industry
AEA Research Highlights
A growing number of US households hire advisers to assist with major financial decisions, such as planning life events or making portfolio choices for retirement. But some advisers exploit the inherent complexity of these decisions and the lack of sophistication of their clients to benefit themselves. In a , , , and show that about 7 percent of financial advisers have serious misconduct records, with rates reaching nearly 30 percent in some regions and firms. The authors explain why misconduct clusters in certain firms and geographic areas, particularly those with wealthy but less...
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Ep. 81: Assessing the Effects of the 2017 Tax Cut and Jobs Act
AEA Research Highlights
In 2017, then-President Trump signed into law the Tax Cut and Jobs Act, which was arguably the largest corporate tax cut in US history. The TCJA significantly lowered the statutory rate that corporations pay in taxes and reshaped numerous tax rules. Proponents said it would boost US competitiveness on the international stage and juice business investment. But its overall effects are still being debated among economists. In a , authors , , and explored the current understanding of the TCJA, discussing its costs and benefits, as well as future policy implications. They argue that, contrary...
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Ep. 80: Agricultural productivity and chronic disease
AEA Research Highlights
A half a century ago, new high-yield varieties of crops were introduced to India, and it transformed the country's farming. This so-called “Green Revolution” significantly boosted agricultural output, allaying concerns about famine and food security. But it may have had some unanticipated consequences for long-term health outcomes. In a , authors and show that the areas where agricultural productivity accelerated the most also saw the highest rates of diabetes among men later in life. The authors argue that substantial changes to the diets of mothers and young children, in the form...
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Ep. 79: Social organization and redistribution
AEA Research Highlights
Qualitative accounts of anthropologists indicate that social structure plays an important role in how resources are shared in society. But quantitative evidence measuring the impacts of social organization on financial ties and transfers has been lacking. In a , authors and helped to fill that gap. They found that in East Africa, cash transfer policies had very different effects in cultures organized by kinship ties compared to cultures organized around age groups. The findings suggest that social organization has a deep impact on how resources spread through economies and ultimately...
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Ep. 78: Broader economic impacts of the Paycheck Protection Program
AEA Research Highlights
The Paycheck Protection Program (PPP) was launched at the height of the COVID-19 pandemic in the hopes that it would keep businesses from laying off workers during government shutdown measures taken to contain the spread of the disease. Initial estimates of the direct impacts have been mixed, with suggesting that the cost was hundreds of thousands of dollars per job saved. But a looked beyond the labor market at a second order effect showing a clear and positive benefit. Authors , , , found that the PPP reduced mortgage delinquencies for commercial real estate by roughly $36...
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Ep. 77: The political power of historical narratives
AEA Research Highlights
In 2005, Austria’s most prominent far-right party proclaimed a “Third Turkish Siege of Vienna.” The campaign warned voters that, like their ancestors who were almost overrun by the Ottoman Empire four centuries ago, they were being culturally invaded by Muslims. The campaigners hoped to use long-past historical events to shape the behavior and sentiments of modern-day voters. But did it work? The strategy sparked a surge in the far-right’s vote share and a wave of anti-Muslim sentiment, according to a . The authors, and , studied areas with ties to the historical trauma of the...
info_outlineIn 2017, then-President Trump signed into law the Tax Cut and Jobs Act, which was arguably the largest corporate tax cut in US history. The TCJA significantly lowered the statutory rate that corporations pay in taxes and reshaped numerous tax rules. Proponents said it would boost US competitiveness on the international stage and juice business investment. But its overall effects are still being debated among economists.
In a paper in the Journal of Economic Perspectives, authors Gabriel Chodorow-Reich, Owen Zidar, and Eric Zwick explored the current understanding of the TCJA, discussing its costs and benefits, as well as future policy implications. They argue that, contrary to what some proponents said, the tax cuts significantly reduced tax revenues.
Zwick recently spoke with Tyler Smith about the legislation, who benefited the most from the bill, and whether provisions that are set to expire in the coming years should be retained.