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1 Alan Cole, Why Temporary Corporate Income Tax Cuts Won't Generate Much Growth 1 (2017)

handle is hein.taxfoundation/wtmcoixu0001 and id is 1 raw text is: S17Why Temporary *ONAO Corporate Income Tax FISCAL Cuts Won't Generate FACT No. 549 Jn Much Growth Alan Cole Economist Key Findings * A temporary cut to the corporate income tax rate is substantially less effective at generating economic growth than a permanent cut. * A ten-year reduction in the U.S. corporate income tax rate to 15 percent would boost investment and growth over the first seven years of the policy, but then reduce growth. * The specter of a future tax increase makes investment under a temporary low rate less enticing, especially for long-lived assets. * A temporary corporate income tax cut is most likely to result in higher payouts to shareholders of corporations; a permanent corporate income tax cut has a much better chance to result in increased wages as well. The Tax Foundation is the nation's leading independent tax policy research organization. Since 1937, our research, analysis, and experts have informed smarter tax policy at the federal, state, and local levels. We are a 501(c)(3) non-profit organization. @2017 Tax Foundation Distributed under Creative Commons CC-BY NC 4.0 Editor, Rachel Shuster Designer, Dan Carvajal Tax Foundation 1325 G Street, NW, Suite 950 Washington, DC 20005 202.464.6200 taxfoundation.org