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We assess the business provisions of the 2017 Tax Cuts and Jobs Act, the biggest corporate tax cut in US history. We draw five lessons. First, corporate tax revenue fell by 40 percent due to the lower rate and more generous expensing. Second, firms with larger declines in their effective tax wedge increased investment relatively more. In aggregate, we suggest a loose consensus from the literature that total tangible corporate investment increased by 11 percent. Third, the business tax provisions increased economic growth and wages by less than advertised by the Act’s proponents, with long-run GDP higher by less than 1 percent and labor income by less than $1,000 per employee. Fourth, provisions that increase foreign investment by US-based multinationals also boost their domestic operations. Fifth, some of the expired and expiring provisions, such as accelerated depreciation, generate more investment per dollar of tax revenue than others. 

DAVID POPP, FRANCESCO VONA, GIOVANNI MARIN and ZIQIAO CHEN: “The Employment Impact of a Green Fiscal Push: Evidence from the American Recovery and Reinvestment Act “ Comments by Gabriel Chodorow-Reich and Valerie A. Ramey and General Discussion SHELBY R. BUCKMAN, LAURA Y. CHOI, MARY C. DALY and LILY M. SEITELMAN: “The Economic Gains from Equity” Comments by Nicole Fortin and Erik Hurst and General Discussion SUSAN CHERRY, ERICA JIANG, GREGOR MATVOS, TOMASZ PISKORSKI and AMIT SERU: “Government and Private Household Debt Relief during COVID-19” Comments by Pascal Noel and Susan Wachter and General Discussion KEVIN RENNERT, BRIAN C. PREST, WILLIAM A. PIZER, RICHARD G. NEWELL, DAVID ANTHOFF, CORA KINGDON, LISA RENNELS, ROGER COOKE, ADRIAN E. RAFTERY, HANA ŠEVČÍKOVÁ and FRANK ERRICKSON: “The Social Cost of Carbon: Advances in Long-Term Probabilistic Projections of Population, GDP, Emissions, and Discount Rates" RICARDO REIS: “Losing the Inflation Anchor” Comments by Alan S. Blinder and Yuriy Gorodnichenko and General Discussion DAVID AUTOR, DAVID DORN and GORDON HANSON: “On the Persistence of the China Shock “ Comments by Marianne Bertrand and Edward Glaeser and General Discussion 

1. DAVID POPP, FRANCESCO VONA, GIOVANNI MARIN and ZIQIAO CHEN: “The Employment Impact of a Green Fiscal Push: Evidence from the American Recovery and Reinvestment Act “ Comments by Gabriel Chodorow-Reich and Valerie A. Ramey and General Discussion SHELBY R. BUCKMAN, LAURA Y. CHOI, MARY C. DALY and LILY M. SEITELMAN: “The Economic Gains from Equity” Comments by Nicole Fortin and Erik Hurst and General Discussion SUSAN CHERRY, ERICA JIANG, GREGOR MATVOS, TOMASZ PISKORSKI and AMIT SERU: “Government and Private Household Debt Relief during COVID-19” Comments by Pascal Noel and Susan Wachter and General Discussion KEVIN RENNERT, BRIAN C. PREST, WILLIAM A. PIZER, RICHARD G. NEWELL, DAVID ANTHOFF, CORA KINGDON, LISA RENNELS, ROGER COOKE, ADRIAN E. RAFTERY, HANA ŠEVČÍKOVÁ and FRANK ERRICKSON: “The Social Cost of Carbon: Advances in Long-Term Probabilistic Projections of Population, GDP, Emissions, and Discount Rates" RICARDO REIS: “Losing the Inflation Anchor” Comments by Alan S. Blinder and Yuriy Gorodnichenko and General Discussion DAVID AUTOR, DAVID DORN and GORDON HANSON: “On the Persistence of the China Shock “ Comments by Marianne Bertrand and Edward Glaeser and General Discussion 

1. DAVID POPP, FRANCESCO VONA, GIOVANNI MARIN and ZIQIAO CHEN: “The Employment Impact of a Green Fiscal Push: Evidence from the American Recovery and Reinvestment Act “ Comments by Gabriel Chodorow-Reich and Valerie A. Ramey and General Discussion SHELBY R. BUCKMAN, LAURA Y. CHOI, MARY C. DALY and LILY M. SEITELMAN: “The Economic Gains from Equity” Comments by Nicole Fortin and Erik Hurst and General Discussion SUSAN CHERRY, ERICA JIANG, GREGOR MATVOS, TOMASZ PISKORSKI and AMIT SERU: “Government and Private Household Debt Relief during COVID-19” Comments by Pascal Noel and Susan Wachter and General Discussion KEVIN RENNERT, BRIAN C. PREST, WILLIAM A. PIZER, RICHARD G. NEWELL, DAVID ANTHOFF, CORA KINGDON, LISA RENNELS, ROGER COOKE, ADRIAN E. RAFTERY, HANA ŠEVČÍKOVÁ and FRANK ERRICKSON: “The Social Cost of Carbon: Advances in Long-Term Probabilistic Projections of Population, GDP, Emissions, and Discount Rates" RICARDO REIS: “Losing the Inflation Anchor” Comments by Alan S. Blinder and Yuriy Gorodnichenko and General Discussion DAVID AUTOR, DAVID DORN and GORDON HANSON: “On the Persistence of the China Shock “ Comments by Marianne Bertrand and Edward Glaeser and General Discussion