PWBM projects that the long-run aggregate macroeconomic effects of Senator Joe Manchin's $1.5T reconciliation framework would be negligible. The economic benefits would largely accrue to younger, poorer households while the economic costs would fall mostly on richer households.
Working part-time or full-time while enrolled in college is not uncommon, but students who do so tend to fall behind their peers in terms of grades or spending more time in undergraduate study, even after controlling for other characteristics such as household resources.
We project that recent tax reforms proposed by the House Ways and Means Committee would increase the incentive of U.S. firms to shift intangible investments and profits to foreign countries with a tax rate below 20.7 percent.
The House Ways and Means Committee reforms proposed as part of budget reconciliation would increase the U.S. statutory corporate income tax rate to 26.5 percent, bringing the combined federal and state rate to 30.9 percent, making the U.S. rate the third highest among OECD members.
The House Ways and Means Committee reforms proposed as part of budget reconciliation would more than triple the U.S. tax rate on multinationals’ foreign income and produce a higher rate than a proposed global agreement currently being negotiated through the OECD.
Even after accounting for differences in observed student ability, students coming from lower-income households are less likely to attend college. If they attend college, lower-income students are also more likely to attend a two-year community college.
Measures of student ability typically used for college admissions implicitly reflect differences in family income across students. However, high school GPA reflects differences in income noticeably less than SAT and ACT scores. However, SAT and ACT scores do capture aspects of student ability missed by school-specific rankings alone.
Student performance in high school is a strong predictor of future success at college, including performance at two-year and four-year colleges, the likelihood of transferring from two-year colleges to four-year colleges, and eventually obtaining degrees.
PWBM projects that the revenue-raising provisions in the House Ways and Means Reconciliation Bill would raise roughly $2.4 trillion from 2022 to 2031.
