Wednesday, October 18, 2017

My WSJ Comment On The Proposed Tax Law Changes

My published comment to the Wall Street Journal opinion, "Where Critics of Tax Reform Go Wrong: Tax Policy Center’s models don’t simulate how the GOP plan would draw investment to the U.S." by Laurence Kotlikoff and Jack Mintz:
Summers, Krugman and the Tax Policy Center are either naive, afraid the tax changes will succeed in improving the economy, or at worst not being honest. Opponents act as if a new tax law is forever and cannot be undone if it creates economic problems. The proposed tax law changes are modifying tax rates, tax brackets, and deductions. Economic growth, business capital investment, productivity, employment participation and wage growth are low and need to be raised. The proposed tax plan is a reasonable and sensible attempt to fix these problems. The IRS infrastructure to collect taxes exists and will continue to exist. If huge deficits arise, we will know quickly after the proposed tax law goes into effect. Neither political party wants deficits to increase from the tax changes. (One party doesn't seem to mind deficit increases due to entitlements programs.) If deficit increases occur from the new tax law, both parties of Congress will agree to quickly amend the tax laws to raise more revenue. The proposed tax changes are worth a try.