Off Course: Critiquing the Debate About the Corporate Tax Cut

The public debate about the corporate tax provisions of the Tax Cuts and Jobs Act has ignored the relevant incentive effects, amid misguided discussions of the one-time employee bonuses and the lack of corporate altruism. The debate should be refocused on the real advantages and disadvantages of the corporate tax cut, particularly the improved investment incentives, the worsening of the long-term fiscal imbalance, and a likely increase in inequality.