This is the first of a multipart series on what macro students should make of the Republican tax reform that was passed at the end of 2017.
This post is kind of a table of contents for other posts, some of which are not written yet, and none of which are complete right now. So I may update this, and you should check it periodically.
Here are some of the issues I want to touch upon first:
- Why tax reform only occurs occasionally
- How major a reform is this, actually?
- Tax incidence vs. tax labeling
- Keynesian thinking (about the demand side) and distortions (mostly on the supply side)
- Brackets, exemptions, deductions, and flat taxes (I changed the order of these two)
- Average vs. marginal rates (I changed the order of these two)
- Progressive vs. regressive
- (New addition) Average/Mean vs. median outcomes
And then I want to get to the major features of tax law that were changed: