Martin Feldstein on Economics of Corporate Tax Cuts

The video discusses the implications of tax cuts in a fast-paced economy with low unemployment. It highlights how the current tax system discourages capital inflow into the US and affects corporate investments. The discussion includes the impact of repatriating funds, often leading to dividends and buybacks rather than R&D investments. The video also covers concerns about increasing deficits due to tax cuts and the legislative measures needed to address these issues, such as reconciliation and budget limits.

What are the potential benefits of a tax cut in an economy with low unemployment?

How does the current tax system discourage capital investment in the United States?

In what ways did the money from buybacks and dividends impact the economy?

What concerns were raised about tax cuts during the Reagan administration?

What is the projected trend of the budget deficit according to the Congressional Budget Office?