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Recent News & Media
Ed Maydew Speaks About Tax Fundamentals for VC Investors in the BTEI Program
December 20, 2021UNC Tax Center Senior Executive Director Ed Maydew recently spoke on tax fundamentals as part of the UNC Entrepreneurship Center's Black Technology Ecosystems Investors Certificate Program. More
Coming Up
5th Annual UNC Tax Center and Tax Policy Center Conference
Wednesday June 8, 2022Join the Urban-Brookings Tax Policy Center and the UNC Tax Center for their annual conference in Washington, D.C. More details to come. More
TCJA Effects Tracker
The Macroeconomic Effects of Corporate Tax Reforms
February 11, 2022This paper extends a standard general equilibrium framework with a corporate tax code featuring two key elements: tax depreciation policy and the distinction between c-corporations and pass-through businesses. In the model, the stimulative effect of a tax rate cut on c-corporations is smaller when tax depreciation policy is accelerated, and is further diluted in the aggregate by the presence of pass-through entities. Because of a highly accelerated tax depreciation policy and a large share of pass-through activity in 2017, the theory predicts small stimulus, large payouts to shareholders, and a dramatic loss of corporate tax revenues following the Tax Cuts and Jobs Act (TCJA-17). At the same time, because of less accelerated tax depreciation and a lower pass-through share in the early 1960s, the theory predicts sizable stimulus in response to the Kennedy’s corporate tax cuts. The model-implied corporate tax multiplier for Kennedy’s tax cuts is four times higher than for the TCJA-17. These predictions are consistent with novel micro- and macro-level evidence from professional forecasters and publicly available tax returns. The paper also offers analytic insights that clarify how these results relate to the capital taxation literature in macroeconomics. More