SCIENTIFIC RESEARCH THE FISCAL POLICY OF THE UNITED STATES

UNIVERSITY OF FINANCE – MARKETING SCIENTIFIC RESEARCH THE FISCAL POLICY OF THE UNITED STATES Students’ Name Class ID Code Contribution Nguyen Thi Bich Tram IP18DAF 1821002410 100% Dao Thanh Xuan IP18DAF 1821005340 100% Vo Huynh Uyen Trang IP18DAF 1821003096 100% Huynh Le Thai Nhan IP18DAF 1821002409 90% Nguyen Thai Hung IP18DKQ02 1821002532 100% Ho Chi Minh City, 2020 UNIVERSITY OF FINANCE – MARKETING INTERNATIONAL SCHOOL SCIENTIFIC RESEARCH THE FISCAL POLICY OF THE UNITED STATES Supervisor: Assoc Prof PhD Tran Nguyen Ngoc Anh Thu Students’ Name Class ID Code Contribution Nguyen Thi Bich Tram IP18DAF 1821002410 100% Dao Thanh Xuan IP18DAF 1821005340 100% Vo Huynh Uyen Trang IP18DAF 1821003096 100% Huynh Le Thai Nhan IP18DAF 1821002409 90% Nguyen Thai Hung IP18DKQ02 1821002532 100% Ho Chi Minh City, 2020 ACKNOWLEDGEMENT We hereby guarantee that my team will self-study the science research paper and have reviewed some test findings and evidence on the internet, as well as some advice from the science professors But through the study, we have paralleled this with the expertise we have gained, based on this scientific research we find that we are more thorough We take full responsibility for this guarantee Ho Chi Minh City, 2020 SCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATES SCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.S TATES ABSTRACTS In the research article, we describe key sections of the research material The first is the fiscal policy theory, we describe the idea of fiscal policy as a macroeconomic policy instrument that influences the scale of economic output by government expenditure or taxation, then explicitly define fiscal policy instruments as government expenditures involving the procurement of goods or services that raise or decrease GDP and influence economic activities Furthermore, the second instrument of fiscal policy is to raise or decrease the tax on government, which would impact economic development through tax reforms Taxes can differ in a number of ways Furthermore, by review on the graph, we explain two fiscal policies which are expansionary fiscal policy and contractionary fiscal policy Next, we clarify how aggregate demand affects monetary policy If the tax spending of the government is higher than its income, the result would be a financial account deficit Likewise, if the disbursed government's revenue is higher than the capital spending, it leads to a capital account deficit or deficit Budget shortfalls are typically expressed as a percentage of GDP Additionally, we clarify how the government is using measures to boost the economy An optimistic stabilization approach is a government or bank tactic to sustain steady economic growth and limited market adjustments Maintaining policy consistency includes analysis of the market cycle and changing the regular ratios as required to cope with demand shifts In Chapter 3, we think specifically about the economic effects of US fiscal policy 2018 Firstly, we're providing an outline of America Next, we clarify the economic policies the U.S government would have in 2018 Finally, we are evaluating with concrete facts the effect of that strategy on the US economy in 2018 We make a conclusion after evaluating the effect of US fiscal policy 2018 and comparing it with the theory We also used analysis approaches to explain the contents When we study fiscal policy, the main purpose is that since fiscal policy has a lot of economic influence, it is important to research and understand more about the effects of fiscal policy on the United States and other nations Central to global growth and prosperity is the SCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATES SCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.S TATES macroeconomics Rebalancing the consumer system when there are signs of inflation or contraction, especially in large countries such as the US This country has a solid economy and an impact that is mainly global The research framework is US fiscal policy in 2018 We use analytical methods for clarifying the information, principles, and interpretation of the results After analysis, the second approach used is the synthetic approach Lastly, mathematical and comparative approaches exist for making information more rational when it comes to results We have evidently seen the consequences of Our monetary policy, namely the expansionary fiscal policy as the government raises budget expenditures over the years, contributing to loanable money, interest rates, and particular inflation Economic spending increases there, or as government tax cuts, the unemployment rate From there we will see the good sides to being preserved, and the negative sides to being resolved for the better economy to build SCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATES SCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.S TATES TABLE OF CONTENTS CHAPTER 1: INTRODUCTION 1.1 Reason to choose the topic 1.2 Objectives of the research 1.3 Some goals we will achieve in the research 1.4 Scope and object of the research 1.5 Research method and data of the research 1.6 Structure of the research CHAPTER 2: FISCAL POLICY THEORIES 2.1 Definition of fiscal policy 2.2 Fiscal policy influences aggregate demand 2.3 Using fiscal policy to stabilize the economy 10 CHAPTER 3: ANALYZING 12 3.1 General of the United State 12 3.2 Fiscal policy of the United State in 2018 13 3.2.1 Expansionary Fiscal Policy 13 3.2.2 Impacting of expansionary fiscal policy in USA 2018 14 3.2.3 Impacting of contractionary fiscal policy in USA 2018 32 3.3 Discussions 34 CHAPTER 4: CONCLUSIONS AND POLICY IMPLICATIONS 35 4.1 Conclusions 35 4.2 Policy implications 35 4.3 Limitation of the research in the future 36 GLOSSARY i REFERENCES ii i SCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATES SCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.S TATES and the removal of personal exemptions, state and local tax deduction caps and a lower mortgage interest deduction cap In the next few years, most U.S households will see their income tax lowered However, the net result of the reforms in tax policy — which also entail decreases in the cost of alternative minimum tax and a decrease in the marginal rate for higher income households — provides greater benefits for those in the upper income distribution deciles As a result, those changes are likely to exacerbate the polarization of income They would also nothing to resolve the urgent needs of the working class, both of which have been identified in the past as critical, macroeconomically related concerns In fact, the relative burden on low- and middle-income households is rising as different provisions expire In order to SCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATES SCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.S TATES adequately prioritize tax relief for lower- and middle-class Americans and avoid income tax decreases for the rich, it would be desirable to recalibrate the rate structure so as to focus tax relief on those earning close to or below average income (with phasing-out tax relief for those making more than 150 percent of average income––the top third of the income distribution) As part of this reform, and in line with previous guidance, the Earned Income Tax Credit benefits and fairness should be expanded, and there is potential for removing loopholes and special laws for high-income earners, including the carried interest clause The combination of these policy changes would help low and middle-income families, increase demand in the private sector, increase jobs, and increase living standards * US President Donald Trump signed the Tax Cuts and Jobs Act on 22 December 2017, in a significant legislative achievement This tax reform, effective January 1, 2018, involves a major overhaul of the US tax system The reform involves a large number of changes, some of its main provisions being: a permanent reduction in the rate of corporate tax from 35 % to 21%, while allowing absolute deduction of savings from the corporate tax base for five years of which it will be phased out; temporary simplification and reduction of individual income taxes and rises in child tax credits; lower income taxes on small business owners; 16 SCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATES SCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.S TATES and abolition of taxes on most overseas corporate profits of the corporate shareholders, it means a move towards a “hybrid” territorial scheme with a onetime transfer tax on untaxed gains of 15.5% on liquid and 8% on non-liquid properties The territorial scheme is augmented by baseline reduction measures and a minimum tax on some of the US corporations’ overseas operations The Tax Cuts and Jobs Act (TCJA) lowered corporate and individual income tax rates and increased corporate incentives to invest Most likely, these features have increased output in the short run, and will continue to so in the long run, but most analysts estimate the modest effects that only offset a portion of the bill’s revenue loss (table 1) SCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATES SCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.S TATES Figure 6: TCJA Growth effects So far, the TCJA has probably primarily influenced the economy by increasing demand for goods and services Cuts to individual income taxes mean that most households are likely to spend more after-tax income Furthermore, provisions such as allowing some capital investment to be expensed may have increased investment spending by companies As companies see more of their 17 SCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATES SCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.S TATES goods being purchased, they are responding by boosting production and boosting economic output Growth rose to 2.9 per cent in 2018, from 2.4 per cent in 2017, probably largely due to TCJA's on-demand impact However, Growth slowed down to 2.3 per cent in 2019 Nevertheless, those short-run effects were probably minimal, for two key reasons First, much of the tax cuts flow to higher-income households or corporations that tend to hold the wealthy's stock Higher income households tend to spend less of their post-tax income rises than households with lower incomes Second, tax cuts were implemented at a time when unemployment was low, and output was close to their potential level The increase in demand was therefore offset by tight monetary policy, since the Federal Reserve held interest rates higher than they would otherwise have been to avoid rising inflation The TCJA is likely to impact the economy in the longer term primarily through increased incentives to work, save, and invest Lowering individual income tax rates means workers can keep more out of every additional dollar of wages and wages This will encourage people to work longer hours and attract some new labor force entrants Those reduced rates are, however, scheduled to expire by the end of 2025; there is little or no tax incentive to increase work after that Lower individual tax rates, lower corporate tax rates, capital investment expenditures, and other reductions in corporate tax rates will increase the aftertax return on savings, encouraging households to save and lower investment costs for companies Those changes will, by most estimates, result in more investment, a larger capital stock and higher output The increased investment must be financed by a combination of private savings, public savings (or government budget surpluses), and foreign net lending (which could take the form of1bond purchases, portfolio investments, or direct physical capital investments) Most analysts, consistent with empirical studies, SCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATES SCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.S TATES 18 estimate that private saving would only rise modestly in response to a increase in the rate of return after tax And the budget, by rising the deficit, decreases public savings Thus, much of any increase in TCJA investment is likely to be funded by net foreign lending This will increase the future interest and profit payments flowing to foreigners, thereby1 reducing the resources available to American people For this reason, when examining the effects of TCJA, it may be more SCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATES SCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.S TATES enlightening to look at changes in gross national product (which subtracts that type of payment) rather than (which does not) gross domestic product * In a variety of euro area economies, the tax burden on US corporate profits would drop substantially to a point like that Chart A displays the United States' corporate tax rate (combined for central and sub-centric governments) before and after the reform as opposed to the broad economies of the euro area Due to the reform, the US corporate tax rate surpassed the rates in all major euro area countries, although it is closer to the lower end of the rates in those countries after the reform Figure 7: Comparison of combined central and sub-central government corporate tax rates 19 SCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATES SCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.STATESSCIENTIFIC.RESEARCH.THE.FISCAL.POLICY.OF.THE.UNITED.S TATES