5. The Tax Cuts and Jobs Act of 2017 implemented corporate income tax reform, lowering the U.S. corporate tax rate from 35% to 21%.

Use a general equilibrium two-graph demand and supply presentation to explain the effects of a reduction in the tax on capital in the corporate sector (with impacts on the non-corporate sector) and explain the likely impacts of the tax reduction on the use of capital in the economy and the incidence of the benefits provided by the tax reduction. Explain the effects of the tax reduction in terms of the output and factor substitution effects that can be expected following the tax rate reduction.

I think reducing the tax on capital in the corporate sector will move capital out of the non-corporate sector, right? Please answer the impact of the tax reduction and the output and factor substitution effects.