Happy Birthday To The TCJA!

One year after the passage of the TCJA of 2017 and analysis of the effects of new tax code has begun. For example, capital investment by S&P 500 companies increased by 8.9 percent in 2018, the highest growth rate in seven years. And Deloitte estimates that the new tax code will increase real GDP by .7 percent per year over the next 10 years. While the boost may not be as high as proponents had hoped, it is important to remember that several provisions of the TCJA, such as the Global Intangible Low Taxed Income, the Base Erosion and Anti-Abuse Act, and the limitation business interest expense, actually increased taxes.