Meaningful discussion of public policy issues requires accurate and reliable information. In a time of fake news and disinformation, we deliver trustworthy, timely, and transparent data so that you are armed with key facts and analysis about the economy and our nation.
What does the economic future look like for the U.S. compared to other G7 countries?
The U.S. economy has widely outperformed its G7 peers since 2016. One indicator of this performance has been the increase in GDP per capita, or the amount of output produced by the population. Relative to other G7 countries, the U.S. has experienced the largest increase in GDP per capita ($2,315).
The U.S. economy is expected to outperform its G7 peers in 2020, according to growth forecasts by the OECD. While the G7 as a whole expects to average a growth of 1.0 percent in 2020, the U.S. is expected to grow at a 2.0 percent rate. Differences in growth across G7 countries can be partially explained by differences in policies. In particular, the U.S. has pursued a series of policies, including tax reform and deregulation, that have made it a more favorable location for investment.
Go Deeper:
- U.S. GDP Per Capita Increased Most Among G7 Countries Since 2016
- U.S. Sole G7 Country Forecast to Grow at 2 Percent in 2020
How do technological improvements affect carbon emission rates in the U.S.?
The reduction in U.S. carbon emissions has been one of the great untold success stories of the 21st century. It shows that done carefully, moves toward less carbon emissions need not radically reduce the living standards of the American people as some current proposals almost certainly would. The key seems to be to rely on technological improvement as witnessed by the 64 percent decline in carbon emissions per unit of GDP.
Changing the composition of fuel for electricity generation – coal to natural gas – is one such example. 27 percent of US electricity is generated by coal. Total coal consumption dropped by a third in a decade. Natural gas and coal have essentially switched places as the key source of electricity generation. But efficiency of use is equally important. Between 2009 and 2018 total electricity generation rose only 5.7 percent. By contrast GDP rose by nearly 25 percent.
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How do higher marginal tax rates affect state migration?
In addition to voting in state-wide elections, individuals can also vote with their feet by moving to a state that treats income more favorably. The data has born this out, with high tax states seeing large migration flows out while low-tax states see large migration flows in. This is partially in response to the 2017 Tax Reform, which limited taxpayers from deducting state income taxes from their federal returns.
Incentives matter, and higher marginal tax rates are a key factor motivating location decisions between states.
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What would repealing the 2017 TCJA mean for the average family?
Repealing the individual side of the 2017 tax cuts would raise taxes on nearly all Americans, with the largest increases in federal income taxes borne by low- and medium-income earners. Using the Open Source Policy Center’s Tax-Cruncher, The Right Facts has calculated the impact of repealing the 2017 tax cuts on different household types.
What have been the effects of the 2017 Tax Cut?
Beyond reducing income tax burdens and boosting disposable household incomes, the Tax Cut and Jobs Act (TCJA) lowered the cost for businesses to purchase new capital. This has led to increased nonresidential capital investments that have boosted GDP growth. The 2017 tax cuts also reversed the trend of declining labor force participation. More people are now working across all age groups and the increased worker participation is large. This is especially true for black men and Hispanic women, who have experienced the largest gains.