UC Berkley's Auerbach Sees Tax Reform Plan Moving Forward

The transcript discusses the challenges faced by the President in gaining support for tax reform amidst the Mueller investigation. It highlights the ambitious tax reform plan driven by Congress, the potential increase in the deficit, and strategies to manage budget costs. The discussion also covers state and local tax deductions, corporate tax cuts, and the economic projections related to tax reform. The role of the Congressional Budget Office and the potential impact of Fed leadership changes are also examined.

What is the main reason the President is struggling to gain support for tax reform?

• Lack of interest from Congress

• Distractions from the Mueller investigation

• Opposition from the public

• Insufficient media coverage

What is the projected increase in the deficit due to the proposed tax reforms?

• $500 billion

• $1 trillion

• $2 trillion

• $1.5 trillion

How might changes to 401K plans affect the government's budget?

• Reduce administrative costs

• Increase long-term savings

• Encourage more investments

• Yield taxes much earlier

What compromise is being considered for state and local tax deductions?

• Eliminating all deductions

• Allowing only income taxes to be deductible

• Allowing only property taxes to be deductible

• Allowing both income and property taxes to be deductible

Why might a gradual reduction in the corporate tax rate be considered better than temporary expensing?

• It is easier to implement

• It avoids investment timing distortions

• It is more popular with businesses

• It reduces the overall tax burden

Which organization is responsible for providing official forecasts for the tax reform?

• Federal Reserve

• Congressional Budget Office

• Department of Treasury

• Internal Revenue Service

What is the current state of the US economy according to the transcript?

• Experiencing high inflation

• Facing a financial crisis

• In good shape with 3% growth

• In recession