The 'Big 6' Republicans published the tax framework yesterday. However, as it is just a blueprint, many details are missing and there is still a long way to go for tax reform.
Committee for a Responsible Federal Budget estimates tax reform would increase government deficit by approximately USD2,200bn over 10 years (i.e. approximately 1% of GDP per year over 10 years).
Easier fiscal policy may not increase growth, as it would most likely be offset by tighter monetary policy.
One headache is that there is not room for such a big tax reform under the Senate draft budget (reportedly USD1,500bn over 10 years).
While the Republicans agree on the goal, they disagree on the means. We still think the two most likely scenarios are a smaller tax reform or no deal at all
It is worth noting that Trump and the White House are still working on a bipartisan tax reform, which after the debt limit deal has become more likely, in order to avoid Republican 'troublemakers'.
To read the entire report Please click on the pdf File Below: