With the passage of the Tax Cuts and Jobs Act of 2017, the corporate tax rate was
Question:
With the passage of the Tax Cuts and Jobs Act of 2017, the corporate tax rate was reduced from 35 percent to 21 percent beginning in 2018. Also in 2018, the Trump administration started what has been described as a “trade war”, with tariffs as high as 25 percent being imposed on certain products from countries including China, Canada, Mexico, and members of the European Union, with most of those countries retaliating by imposing tariffs of their own on U.S. exports. Assuming that these tariffs will result in a reduction of international trade and therefore make the United States more of a closed economy, explain the impact this trade war will likely have on the burden of this reduced corporate tax.
Step by Step Answer:
Mylab Economics With Pearson Access Code For Principles Of Microeconomics
ISBN: 9780135197141,9780135197103
13th Edition
Authors: Karl E. Case; Ray C. Fair; Sharon E. Oster