Insights / Research BriefMar 12, 2024

Tax Policy and Investment in a Global Economy

Gabriel Chodorow-Reich, Matthew Smith, Owen M. Zidar, Eric Zwick
While the Tax Cuts and Jobs Act increased domestic investments of US-based multinational corporations, this extra revenue was offset by the higher cost of depreciation deductions. As a result, the 14-percentage-point tax rate cut resulted in large corporate tax revenue losses.