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Scenario Recent tax legislation reduced corporate tax rates from 35 percent to 2

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Scenario
Recent tax legislation reduced corporate tax rates from 35 percent to 21 percent. Proponents of the law suggested that these tax reductions would pay for themselves by galvanizing higher growth and generating fresh revenue for the government.
While the Treasury Department may be relying on dynamic economic models to suggest that deep tax cuts do not add to the deficit, Congress may have to use more cautious assumptions that the Joint Committee on Taxation uses. If these show the tax reductions adding to the deficit, it could create procedural challenges within Congress.
Instructions
Research domestic taxation in the WCU online library and on the Internet. Write a two- to three-page paper in APA Style. Let the following guide you in your research and writing.
Of the four factors of production that provide income, rent, wages, interest, and profit, under which does the corporate income tax fall? Explain.
How does the corporate income tax influence investment and saving and the real interest rate? Draw a graph to illustrate your answer.
How does the corporate income tax influence potential GDP and the real GDP growth rate?
Explain the reasoning behind the claim that a cut in the U.S. corporate income tax rate might speed economic growth. What does the evidence from Canada and Ireland imply about the strength of the effect?

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