Both the House’s tax bill and the Senate Finance Committee’s bill slash the corporate income tax rate from 35 to 20%, a much needed reform that will pull capital into the United States and grow the economy. Thankfully, both bills cut the corporate rate on a permanent basis.
DetailsFollowing his remarks, Chairman Brady joined AEI’s Alex Brill for a discussion on the potential opportunities and impacts of tax reform. Mr. Brill asked Chairman Brady about the features of the Tax Cuts and Jobs Act and the ways in which the act would affect different individuals. Mr. Brill discussed the significance of the corporate tax rate cut and the change in standard deduction that tax reform would bring. Chairman Brady concluded by emphasizing the importance of moving to a simpler tax system.
DetailsI believe that the current US tax code imposes drag on US economic growth and alternatives to the current system could result in an increase in the capital stock, a boost in worker productivity, and thus an increase in wages. This positive economic result would occur slowly over time as new investment is deployed and workers adopt to new opportunities.
DetailsThe prospect of major tax reform that broadens the tax base and lowers tax rates has the residential housing industry in panic mode. The National Association of Realtors recently called the House tax bill “an outright assault on homeownership in America.” Separately, a study commissioned by the Realtors warns that comprehensive tax reform would result in an average drop in home values of 10%. But the reality is that the housing market will be fine if the House Republican tax plan is enacted.
DetailsWe are scholars at the American Enterprise Institute, a nonpartisan, nonprofit policy research entity. Dr. Satel is a practicing psychiatrist who has studied and researched a broad range of matters related to mental health policy and addiction, including tobacco harm reduction. Mr. Brill is an expert in public finance and health economics, with a concentration in the economic and public health implications of smoking and its alternatives. The views expressed here are ours alone and may or may not reflect the views of our colleagues.
DetailsWhile speaking as a panelist, Alex Brill says, “we can have a tax reform that is net positive for the overall economy. With a better system, one different from the system we have today, the size of the US economy will be larger than it otherwise would be. It will take time from the day of enactment to the day that that effect is fully realized. And during that period of time, the economy will grow faster and then it will reach this new higher level that it otherwise wouldn’t reach and we will all be better off as a result of that.”
Details“[Alex] Brill explained that it might be the right moment for tax reform. He expected a bipartisan bill to emerge early next year to serve as the latest in a cycle of tax policies that should help stimulate the US economy, but added that he isn’t holding his breath. “It’s been 31 years since lawmakers did something called tax reform,” Brill said.”
Details“As the result of this infuriating tactic, patients, insurance companies and the federal government pay an additional $5.4 billion annually on drugs, according to a study by Matrix Global Advisors for the Generic Pharmaceutical Association.”
Details“Alex Brill of the American Enterprise Institute told Tax Analysts that his estimates show that repealing the state and local tax deduction would raise about $1.4 trillion over a decade and could pay for a large reduction in statutory tax rates. “Being the single largest itemized deduction, its repeal can foster significant simplification, as without it more taxpayers will claim the standard deduction,” Brill said.”
DetailsDiscussing the SALT deduction, Alex Brill says:
“That actually is part of the definition of tax reform as it is eliminating and changing the winners and losers arrangement and creating a level playing field…. So, my sense is in those congressional districts, the Republican districts in the blue states where this is going to hurt a little bit more, there are other things in this plan that are going to be good for their constituents overall. We are going to see lower tax rates. We are going to see a larger standard deduction. So we are going to see a lot of people in the middle class better off.”
Details
