Summary: Republican leaders are now out with their proposal for tax reform. The good news is the plan is pro-growth. It really could get us out of the lurch, giving corporations a mechanism to bring almost 3 trillion dollars home from abroad, and to reinvest that money right here … in America. The bad news—or the concerning news—is we’re running out of time. The plan allows businesses to fully expense many equipment purchases. But until the tax passes, business are going to take a “wait and see” approach: Why buy equipment now if you can wait till tax reform passes?—when you can then buy and deduct the expense right away? If the tax reform takes too long to pass, the economy will slow, and the GOP could enter a mid-term election in the midst of a slow-down or even a recession—and they’ll pay a price. No, this tax plan is not perfect, but it’s a vast improvement over what we have now. Republicans and moderate Democrats ought to move quickly to pass it.
