NAM Releases Study to Show Effect of Repealing Tax Reform
April 9, 2021
According to John W. Diamond and George R. Zodrow, economists from Rice University, proposals to change the system enacted by the 2017 Tax Cuts and Jobs Act will lead to less economic activity and 1 million jobs lost in the first two years. The changes that have been proposed include increasing the corporate tax rate from its current level of 21% to 28% and repealing the 20% deduction for certain pass-through business income immediately, rather than expiring after 2025. Another proposal would raise the top individual tax rate from 37% back to 39.6% immediately, rather than expiring after 2025.
Read a summary of the study conducted by Diamond and Zodrow here, which is provided by the National Association of Manufacturers. ABI is a member of NAM.