The Big Six’s tax reform framework: The good and the bad

Source: Niskanen Center
by Karl Smith

“The Big Six —two representatives each from the White House, the Senate and the House of Representatives — released their framework for tax reform on Wednesday and the responses have been lukewarm to negative. A particularly brutal take came from Josh Barro at Business Insider, who called the GOP’s pledge to ‘double the standard deduction’ a lie. Here’s the important fine print: ‘To simplify the tax rules, the additional standard deduction and the personal exemptions for taxpayer and spouse are consolidated into this larger standard deduction.’ … Yet, while this proposal isn’t as promising as it could be in terms of tax relief, it scores better as tax reform. For individual taxpayers, we see a meaningful effort to curb and slowly eliminate the myriad of deductions and loopholes that plague the tax code. On the corporate side, the move to a territorial system is a step in the right direction, toward a system with less gamesmanship and fewer tax-avoidance strategies.” (09/29/17)