Tax cuts and ”middle-class” workers

Research output: Contribution to journalArticle

Abstract

The supporters of the new tax plan, the Tax Cuts and Jobs Act, have suggested that the benefits will primarily go to workers through higher wages. In this article, I examine the impact Romer and Romer (2010) exogenous tax changes have on median weekly earnings. The findings suggest that the direct impact of lower taxes on median weekly earnings is not statistically significant. Nevertheless, the results suggest that deficit-driven tax increases contribute to lower median weekly earnings.

Original languageEnglish
Pages (from-to)276-281
Number of pages6
JournalEconomic Analysis and Policy
Volume65
DOIs
StatePublished - Mar 2020

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