Adam Posen on What Tax Reform Should Be

The transcript discusses the concept of revenue-neutral tax reform, emphasizing the need to close loopholes and lower marginal rates. It critiques current tax cuts for favoring the wealthy and not benefiting the real economy. The discussion shifts to monetary policy, considering potential rate hikes by the Federal Reserve amidst fiscal changes.

What is the primary goal of the proposed tax reform discussed in the first section?

• To increase government revenue significantly

• To be revenue-neutral and close loopholes

• To provide large tax cuts to all citizens

• To increase the corporate tax rate

According to the first section, what is a major criticism of the current tax cuts?

• They are too small to impact the economy

• They significantly reduce the national debt

• They primarily benefit the middle class

• They do not close any loopholes and benefit the wealthy

What is the expected outcome of the current tax reforms on corporate behavior, as discussed in the second section?

• More stock buybacks and dividends

• Increased wages and corporate investment

• Significant reduction in unemployment

• Expansion of small businesses

In the context of the second section, what is necessary to stimulate real economic growth?

• Reducing government spending

• Implementing more stock buybacks

• Changing incentives for wages and investment

• Increasing the corporate tax rate

What does the final section suggest about the Federal Reserve's potential actions?

• They should focus solely on the health care vote

• They should stop all monetary policy changes

• They should consider one more rate hike

• They should decrease interest rates immediately