Republicans Can’t Afford Their Tax-Cut Habit

Senate Republicans are desperate for cash. Right now, the Senate GOP tax bill would likely add more than $200 billion to the deficit, annually, in the second decade after it’s passed. But due to arcane Senate rules, Republicans can’t pass their tax plan out of the upper chamber — without Democratic cooperation (which they aren’t going to get) — unless their bill adds $0 to the deficit, annually, in the second decade after it’s passed.

This is not a small problem. The single most expensive provision in the GOP tax plan is a 15-point reduction in the corporate tax rate. Republicans could scrap that entirely — leave the current corporate rate at 35 percent, while keeping every loophole closure currently in their plan — and the bill would still add $45 billion to the deficit in 2027, according to estimates from Congress’s Joint Committee on Taxation.

Full Article: New York Magazine – intelligencer

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