A pro-growth tax bill is on the way
That will include offshoring. A delay will deter foreign companies from coming to the United States. You may wind up losing revenues -- perhaps $100 billion.
On the House side, the so-called bubble rate of 45.6 percent is also not a good idea. It's being done to claw back the 12 percent rate high-end earners move through on the way to 40 percent. But why punish success?
Those upper-end folks are largely investment-oriented. As FedEx CEO Fred Smith says, it's time to stop punishing investment. That includes businesses and individuals.
Let the Democrats be the class warriors who tax the rich. The GOP stands for growth.
I assume this will be fixed in conference.
There are other issues. The personal side is a mishmash of credits and deductions. This is no Ronald Reagan bill of 1986. Good tax reform slashes individual rates so that reductions and loopholes are no longer necessary.
But there's no slashing on the personal side, and it will be a fight over deductions. And, frankly, I'm underwhelmed by the deduction part.
I keep thinking: Why didn't the House and Senate simply agree on a 3 percent growth rate? And why haven't they embraced the Trump administration's argument that the business tax cuts will pay for themselves and generate 3 percent growth over the next decade?
House and Senate negotiators agreed on a 2.6 percent growth baseline. It's better than the Congressional Budget Office's 1.9 percent. But with 3 percent, they would have picked up $500 to $700 billion in additional revenues from faster growth.
Unfortunately, no model captures the significant pro-growth effects of international flows, such as repatriation and the possible capital inflow from foreign companies. Is it possible this could be changed in conference? Just a thought.
Of course, the old Byrd rule bugaboo is back. It annuls tax cuts if they promote deficits after 10 years.
So here's another thought: Senate Majority Leader Mitch McConnell used the nuclear option to end the filibuster on Supreme Court justice Neil Gorsuch. Why not nuclear-option the Byrd rule? Vice President Mike Pence is ready in the wings to override any objection.
The GOP must not let process stop growth-producing tax cuts. Growth is too important.
So let's play hardball, GOP, and do what's necessary to get these pro-growth tax cuts legislated and signed before year-end.
That will move the American economy back to the top of the worldwide heap. As Presidents John F. Kennedy and Ronald Reagan argued, when we are strong at home, we're strong abroad.
To find out more about Lawrence Kudlow and read features by other Creators Syndicate writers and cartoonists, visit the Creators Syndicate Web page at www.creators.com.Copyright 2017 Creators Syndicate Inc.