Serious U.S. Tax Reform Unlikely, Says Shepherdson

The transcript discusses the assumptions of deficit to GDP ratios and the unlikely chance of significant tax reform as proposed by Trump. It highlights the impact of disasters like Harvey on the deficit and the lack of congressional willingness to change fiscal policies. The role of fiscal hawks and spending priorities, including tax reform and defense, is examined. The budget negotiations are held hostage to gain clarity on tax reform specifics, which is crucial for any budget deal to progress.

What factors are influencing the budget negotiations according to the speaker?

What are the implications of the budget deal mentioned by the speaker?