Economic Effect Analysis Of Trump Administration's Tax Policy Reform

Trump formally signed the tax cuts and Employment Act on December 22,2017,which also marks the beginning of the Trump administration's tax policy reforms.The main content and purpose of Trump's current tax policy is still to stimulate economic growth by lowering corporate and personal income taxes,so as to get rid of the current economic lacklustre.But this tax policy reform is different from other tax policy reforms in that Trump says the tax on overseas profits has changed from a global tax to a territorial principle,which is designed to allow the US to return overseas funds.Promote the re-industrialization of the United States,lighten the tax burden of families,etc..Trump's tax reform has a certain positive effect on economic growth,but it must also have a certain negative impact,and as a result of this reduction in corporate and personal income tax,the government budget deficit may be enlarged in the future.And it will benefit the rich even more,exacerbate inequality among American social strata,and the economic scope of the United States is global,and the reform of tax policy will have some spillover effect on other countries.For example,it will have an obvious impact on international direct investment and international capital flows.But China is a country with very close economic ties with the United States,and tax reform will inevitably affect our foreign capital.Based on the general equilibrium model(CGE),this paper builds a social accounting matrix based on the input-output table and the government income and expenditure table,which has an impact on the international economic cooperation.A quantitative analysis of the economic effects of the Trump administration's tax reform is carried out,predicting its impact on revenue,the GDP,interindustry structure and the social and economic welfare of the United States.As there have been several tax policy reforms in the history of the United States,the sharp reduction of tax rates in the tax policies carried out since Trump took office is bound to be the focus of global attention.The main purpose of this paper is to sort out and sum up the contents of the adjustment of US tax policy,and analyze the impact of the change of US tax rate based on the general equilibrium model,and analyze the data supported by the data.And the data that will be used also has a very strong timeliness,and will reflect on thecurrent tax reform of the Trump administration in combination with the problems existing in China's current tax system,for example,there are many fees and charges outside the tax revenue in China.With the existence of the single preferential system,the potential tax rate in our country is still very high,and the actual preferential treatment received by enterprises and residents is not high.Therefore,on the one hand,our country should regulate the revenue of our country's tax revenue on the one hand.The fee system and the implementation of targeted industrial tax policies,on the other hand,on the basis of drawing lessons from the Trump administration's tax policy reform,in order to prevent the United States tax reform may have an impact on our country's capital flows and direct investment,and so on.China should further improve the mechanism of capital introduction,deepen the reform of economic system,push forward the tax reduction policy of enterprise structure in China,and actively respond to the tax policy reform of Trump administration.