  This paper extends a standard general equilibrium framework with a corporate
tax code featuring two key elements: tax depreciation policy and the
distinction between c-corporations and pass-through businesses. In the model,
the stimulative effect of a tax rate cut on c-corporations is smaller when tax
depreciation policy is accelerated, and is further diluted in the aggregate by
the presence of pass-through entities. Because of a highly accelerated tax
depreciation policy and a large share of pass-through activity in 2017, the
model predicts small stimulus, large payouts to shareholders, and a dramatic
loss of corporate tax revenues following the Tax Cuts and Jobs Act (TCJA-17).
These predictions are consistent with novel micro- and macro-level evidence
from professional forecasters and sectoral tax returns. At the same time,
because of less-accelerated tax depreciation and a lower pass-through share in
the early 1960s, the model predicts sizable stimulus in response to the
Kennedy's corporate tax cuts - also supported by the data. The model-implied
corporate tax multipliers for Trump's TCJA-17 and Kennedy's tax cuts are +0.6
and +2.5, respectively.
