President Trump and the boys from Goldman Sachs have put together a dazzling tax reform plan. It has enough pro-growth incentives to energize the economy even after Congress eliminates some of them. But there’s a problem: paying for it.
Democrats aren’t worried about this. They’re against the whole bill, period. But Republicans should be concerned. They will have to choose between creating a permanent new tax system that benefits most Americans or an array of tax cuts likely to be temporary.
Unsurprisingly, a disagreement between Trump officials and Republican leaders in Congress has already surfaced. This has excited the media. Politico jumped in first with a story that House speaker Paul Ryan is likely to get rolled on tax reform.
I doubt he will, though word is being spread by the Trump administration that paying for tax reform won’t be necessary. Why? Because a surge in tax revenues from faster economic growth will solve the problem. That will make up for the lost taxes from deep tax cuts.