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Here Are The Reasons Why Today’s Republican Debacle Makes Tax Reform Less Likely
zerohedge.com / by Tyler Durden / Mar 24, 2017 6:08 PM
With Americans now “stuck with Obamacare for the foreseeable future“, attention shifts to Trump’s next agenda item: tax reform.
This was confirmed by none other than the President himself who moments ago said that “Republicans will probably work on tax reform now.” To be sure, following today’s embarrassing fiasco, Trump will be eager to move on to a law which will be easier to pass, and according to market consensus, tax reform is precisely that. Alas, consensus may once again be wrong.
Ignoring the fact that work on tax reform in earnest won’t start for 6-8 weeks as House Ways and Means member Merchant said moments ago, and may not even take place until fiscal 2018 (after August), the reality is that since Obamacare and tax reform are both parts of the Reconciliation process, as a result of not freeing up hundreds of billions from the deficit that the CBO estimated repealing Obamacare would do, it means that Trump’s tax cuts have been hobbled – by as much as $500 billion – before even starting.
Furthermore, with the Freedom Caucus flexing its muscle and openly defying Trump, another major headache for Trump’s tax reform is that the Bordere Adjustment Tax – an aspect of the reform that the Caucus has been vocally against – is likely off the table. And since BAT was expected to generate over $1 trillion in government revenues, it means that a matched amount in tax cuts is also now off the table.
In summary, between Obamacare repeal and BAT being scrapped, roughly $1.5 trillion in budget “buffers” are wiped out.
The post Here Are The Reasons Why Today’s Republican Debacle Makes Tax Reform Less Likely appeared first on Silver For The People.
Source: http://silveristhenew.com/2017/03/24/here-are-the-reasons-why-todays-republican-debacle-makes-tax-reform-less-likely/
