Republicans are closer than ever to delivering on their tax reform promise. Their plan would reduce the corporate and individual tax rates, increase deductions, and simplify the existing tax code. While Republicans and some economists argue that reform would significantly boost economic growth and raise wages, critics have doubts about the growth effects of the legislation, given the large budget deficit.
“The economy, up until this year, has been very much disappointing, and if you look at real wage growth, it’s been as bad as you’ve ever seen in the recovery,” said Kevin Hassett, chair of the White House Council of Economic Advisers, at the Cato Institute on Nov. 30.
