The Joint Committee on Taxation (JCT) today released a macroeconomic analysis of the “Tax Cuts and Jobs Act,” as passed by the U.S. House of Representatives.
The JCT report states that:
We estimate that this proposal would increase the level of output (as measured by real Gross Domestic Product (“GDP”)) by about 0.7 percent on average over the 10-year budget window. That increase in output would increase revenues, relative to the conventional estimate of a loss of $1,436.8 billion by about $483 billion over that period. This budget effect would be partially offset by an increase in interest payments on the Federal debt of about $55 billion over the budget period. We expect that both an increase in GDP and resulting additional revenues would continue in the second decade after enactment, although at a lower level, as the incentive effects of several provisions that are expected to increase GDP within the budget window weaken over time.
For the JCT’s macroeconomic analysis of the bill that was previously reported by the Senate Finance Committee, read JCX-61-17.
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