 (AP Photo/Alex Brandon) By Matt O'Brien There are only two certainties in life: death, and Republicans cutting taxes. That, after all, is what Ronald Reagan did, it's what George W. Bush did, and it's what Donald Trump has promised to do—which, with a Republican House and Senate, looks like as sure a bet as there is. What's less clear, though, is whether it will be a run-of-the-mill tax cut or a once-in-a-generation tax reform. What's the difference? Well, tax cuts are just about lowering tax rates, while tax reform is usually about lowering tax rates even more and paying for it by getting rid of tax breaks. The problem, of course, is that some people wouldn't benefit as much from lower tax rates as they do now from the tax loopholes that would be closed—so they'll fight it. In other words, tax cuts are easy because everyone is a winner, but tax reform is hard because there are losers. Still, Speaker of the House Paul Ryan thinks it's worth it since tax reform would let them cut rates lower and for longer than they otherwise could. That second part is the most important. Read the rest on Wonkblog. |
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