Question

Evaluate the Tax Cuts and Jobs Act of 2017 in terms of revenue collection. Do you think it might increase or decrease tax revenues? Why? What were the assumptions for your conclusion?

Answer 1

Solution:

Given That:

The Government Evaluate the Tax Cuts and Jobs Act of 2017 in terms of revenue collection.

• These desirable fallout would increase GDP of country and automatically income of country will rise.
• But it is expected that over the long run, tax incentives will encourage more investment and economic activities.
• Government new policy to reduce the tax rates across the board will definitely reduce the revenue of government in short run.
• their is in other words, immediate impacts would not be favorable for government. Fall in tax will reduce income of government.
• Government revenue will fall in short run but over the long run, it might experience rise in revenue.