UK proposed corporate tax reform results

[nikhilwoodruff]

One of the proposals from a few of the leadership candidates earlier this month was to set the UK corporate income tax rate at 15% (it's currently 19% and set to rise to 25% in 2023).

I just tried running this through OG-UK and got the following result (percent formatted).

Variable	2022	2023	2024	2025	2026	2027	2028	2029	2030	2031	2022-2031	SS
GDP ($Y_t$)	+0.07%	+0.13%	+0.15%	+0.16%	+0.20%	+0.12%	+0.11%	+0.09%	+0.08%	+0.07%	+0.12%	+0.27%
Consumption ($C_t$)	-0.04%	-0.92%	-0.20%	-0.02%	+0.06%	+0.13%	+0.16%	+0.17%	+0.18%	+0.19%	-0.03%	+0.47%
Capital Stock ($K_t$)	+0.09%	+0.25%	+0.46%	+0.49%	+0.53%	+0.55%	+0.54%	+0.53%	+0.51%	+0.49%	+0.44%	+1.20%
Labor ($L_t$)	+0.05%	+0.07%	-0.01%	-0.01%	+0.02%	-0.12%	-0.13%	-0.14%	-0.15%	-0.16%	-0.06%	-0.23%
Real interest rate ($r_t$)	+0.98%	+2.37%	+1.98%	+1.93%	+1.92%	+1.72%	+1.70%	+1.70%	+1.71%	+1.72%	+1.77%	+0.76%
Wage rate	+0.01%	+0.06%	+0.16%	+0.18%	+0.18%	+0.23%	+0.24%	+0.24%	+0.23%	+0.23%	+0.18%	+0.50%

For a ten-point rate cut, these results seem small. I'm definitely reading them right as already percentages right? It could also be the fact that we're still using the linear tax fit.

cc @jdebacker @rickecon @MaxGhenis