Chris Campbell

Business Tax Reform: Hammering Out the Details

Ben White, Chris Campbell, Ross DeVol, Douglas Holtz-Eakin, Gene Sperling, Mark Weinberger

The White House and Republican congressional leadership have unified behind a tax reform package leveraging budget reconciliation to pass with a simple majority, though experts warn that claims of self-funding through growth are mathematically inconsistent with current proposals. Key debates center on the inclusion of corporate cuts alongside individual rate reductions, while panelists express skepticism regarding the Border Adjustment Tax's viability and the likelihood that the final legislation will fail deficit neutrality tests under the Byrd Rule. Consequently, the anticipated outcome is a significant short-term stimulus with temporary deficits rather than a permanent, revenue-neutral reform, leaving bipartisan support unlikely without structural adjustments favoring the middle class and infrastructure investment.