Business Roundtable Analysis on Camp Proposal: Tax Reform Would Strengthen Economy, Create Jobs
Today, the Business Roundtable (BRT) released an analysis of the economic impact of House Ways and Means Committee Chairman Dave Camp’s tax reform discussion draft, which was released last month. The analysis was conducted by Rice University Professors John Diamond and George Zodrow, whose well-regarded economic models have been used by the U.S. Treasury and Joint Committee on Taxation. In short, the report finds that Camp’s draft would “result in significant improvements in U.S. economic growth, with increases in GDP, after-tax wages, consumption, and business investment.”
Based on this analysis, the BRT notes that tax reform would:
- Boost after-tax wages for American workers by 2.3 percent two years after enactment, by 3.8 percent after 10 years, and by 6.1 percent over the long term;
- Increase U.S. annual GDP by 0.9 percent two years after enactment, by 2.2 percent after 10 years, and by 3.1 percent over the long term; and
- Expand U.S. annual domestic investment by 1.8 percent two years after enactment, by 6.5 percent after 10 years, and by 6.8 percent over the long term.