Tax Reforms of R. Reagan and D. Trump: Evolution of Priorities

 
PIIS032120680001165-5-1
DOI10.31857/S032120680000356-5
Publication type Article
Status Published
Authors
Affiliation: Institute for the U.S. and Canadian Studies. Russian Academy of Sciences (ISKRAN)
Affiliation: Institute of Economy, Russian Academy of Sciences
Address: Russian Federation
Journal nameUSA & Canada: ekonomika, politika, kultura
EditionIssue 8
Pages5-25
Abstract

An overall assessment of the possible consequences of D. Trump's large-scale tax reform for the economic development of the United States in the medium and long term is given. The general conclusion is drawn that in the short term the tax reform of D. Trump will contribute to the acceleration of economic growth, but in the future, its stimulating effects will sharply weaken, since the D. Trump tax reform, as well as the R. Reagan tax reform in 1981, sharply exacerbate the problem of federal budget deficits, which will negate its initial stimulating effects. The Trump tax reform is even more than Reagan's tax reforms of the 1980s aims for budget support of the corporate sector of the American economy and the wealthiest taxpayers of American society, which are considered by the architects of Trump's tax reform as the main driver of US economic development.

 

Keywordsfederal budget, tax reform, stimulating effects, fiscal effects, Laffer curve, economic growth, budget deficit, gross federal debt, R. Reagan, D. Trump.
Received25.09.2018
Publication date26.09.2018
Number of characters945
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