Date of Graduation
5-2024
Document Type
Thesis
Degree Name
Bachelor of Science in Business Administration
Degree Level
Undergraduate
Department
Accounting
Advisor/Mentor
Jarnagin, Robyn
Abstract
Throughout this paper I will examine positive effects the Tax Cuts and Jobs Act of 2017 had on the manufacturing sector. To do this I begin by outlining the key provisions in the TCJA that directly benefit the manufacturing sector. This includes the corporate tax rate reduction from 35 percent to 21 percent, the changes to the repatriation tax for foreign funds, and the treatment for capital assets. I then analyze key metrics including pre-tax income, income tax provision, dividends, changes in retained earnings, and spending on property plant and equipment. I will show the interactions between the increase in these key metrics after the passing of TCJA. I will then analyze the industrial sector of the S&P 500 and show the positive effect the TCJA act had on index returns. Finally, I will discuss the critiques of the TCJA before concluding my paper.
Keywords
Tax Cuts and Jobs Act (TCJA), economics, corporate tax rate, U.S. deficit, repatriation
Citation
Parker, R. (2024). What Impact did the TCJA Tax Cuts Have on the Manufacturing Sector?. Accounting Undergraduate Honors Theses Retrieved from https://scholarworks.uark.edu/acctuht/60
Included in
Accounting Commons, Business Analytics Commons, Growth and Development Commons, Labor Economics Commons, Law and Economics Commons, Macroeconomics Commons, Taxation Commons, Taxation-Federal Commons