Experts Debate Impact of TCJA on Growth and Investment

The Economist’s print edition, published February 7th, reports that “Some Fights About the Tax Cuts and Jobs Act Seem Over.” Public opinion polls indicate that voters think that “large corporations and rich Americans” are the ones benefiting from the tax law. Meanwhile, policy analysts continue to debate the details.

The White House’s Kevin Hassett, finds that investment and economic growth are up, largely due to the tax law. PWBM projected that the tax law would boost economic growth, but not enough to pay for itself. In addition, PWBM research finds that higher oil prices account for almost all the rise in investment, which may slacken now that oil prices are lower.