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Study: GOP tax plan would cost $2.4 trillion

The Hill – GOP tax plan will explode deficit: “The Republican tax plan expected to be released this week will explode the deficit, according to a study from the University of Pennsylvania’s Wharton School released Monday. The study, which relies on the Penn Wharton Budget Model (PWBM), found that the deficit would increase by $1 trillion to $3.5 trillion over the course of the first decade, based on differing estimates of how the final plan will look. By 2040, the plans would cost between $2 trillion and $10.6 trillion. House Republicans are set to reveal their tax plan Wednesday, adding details to the framework that calls for lowering corporate taxes, paring down the number of tax brackets and eliminating a variety of loopholes.

Key Points

  • The “Big 6” recently released a ‘Unified Framework’ for addressing tax reform.
  • The details of many key pieces remain unspecified.
  • How the details are filled in has differential impacts on the federal budget and economy.”

See also via Wharton – the Options for the Unified Framework Tax Plan – CLICK HERE FOR INTERACTIVE SIMULATION – OVERVIEW OF THE UNIFIED FRAMEWORK – The Unified Framework for tax reform released on September 27, 2017 proposes changes to the current tax code. The plan offers changes to individual, corporate and international taxes. The proposed changes are presented in Table 1. The broad goals include tax relief for middle-class families, simplification and tax relief for businesses. The plan also aims to provide greater fairness by eliminating certain tax breaks. The expectation is that the changes will also remove the incentive for businesses to move jobs and capital overseas.”

And – “The Tax Policy Center’s initial September analysis of the plan drew fire from some conservatives for not including the effects of economic growth on revenues.”

And – “A prior Harvard/U Michigan paper – “They have 400% of corporate tax cuts going to wages – so v. little relation to estimates in paper with 60% of cuts going to labor…”

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