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TCJA2017: Impact On The MVA Of Domestic Companies

401 Words2 Pages

Hi Jessica,
I agree with your statement that the TCJA2017 tax reform had a more favorable impact on the MVA of domestic companies than the MVA of multinational companies. Domestic companies seemed to benefit from it the most. Not only does it lead to higher earnings and increased cash flow, it also strengthens the motivation for companies to invest more (Tax Policy Center, 2020). A high MVA can also lead to a company having better chances for surviving. Other than that, the TCJA2017 also played a part in reducing tax rates for individual income as well. Therefore, the economy was affected by the TCJA2017 because it raised demand for services and goods and made it possible for households to be able to spend more money because their after-tax income increased (Tax Policy Center, 2020). This means that the TCJA2017 can help improve the economy and lead to more people investing. Even though the TCJA2017 has proven successful in the short run, it can …show more content…

Maybe if the unemployment rate was lower, then this would not have been the case. Therefore, some of the ways that the TCJA2017 could affect the economy in the long term would be by increasing the motives of people to work more, put aside money, and eventually invest (Tax Policy Center, 2020). This means that not only does the TCJA affect domestic and multinational companies, it also affects individuals and households, and our economy as a whole. Finally, the TCJA has a great impact on domestic companies because lower rates means more profit, which allows for using that extra cash on resources that improve products and/or services (Fontinelle, 2022). There are also other benefits. They are an increase in GDP, income, and more full time jobs as well (Fontinelle, 2022). These are just some other effects that the TCJA2017 had on

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