The Trump Tax Reform Is Generating Good Results

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Posted: Jun 18, 2019 11:52 AM
The Trump Tax Reform Is Generating Good Results

Source: AP Photo/Alex Brandon

The crown jewel of the 2017 tax plan was the lower corporate tax rate.

I appeared on CNBC recently to debate that reform, squaring off against Jason Furman, who served as Chairman of Obama’s Council of Economic Advisers.

Here are a couple of observations on our discussion.

P.S. This wasn’t addressed in the interview, but I can’t resist pointing out that overall revenues for the current fiscal year have increased 2.2 percent, which is faster than needed to keep pace with inflation. So why has the deficit increased? Because spending has jumped by 5.8 percent. We have a spending problem in America, not a deficit problem. Fortunately, there’s a very practical solution.

P.P.S. It also wasn’t mentioned, but the other crown jewel of tax reform was the restriction on the state and local tax deduction.