Tax Bill 3 Don’t Mess With Taxes

Thanks to everyone who commented on my last two posts, especially the many people who disagreed with me. Two things I will admit I got mostly wrong:

1. I was wrong to say there was “no case” for the tax bill. Aside from all of the minor provisions which can be good or bad, the case for slashing corporate rates is that they’re more distortionary and less efficient than other forms of taxation. Thanks to everyone who pointed this out to me.

2. Several people brought up problems with the article saying CEOs say they will just give the money back to shareholders, most notably that giving money back to shareholders may stimulate the economy in other ways.