Martin Feldstein Says the Big Issue Is Tax Reform

The video discusses the challenges and implications of health care and tax reform in the U.S., focusing on the importance of corporate tax reform for economic growth. It highlights the need for revenue-neutral policies to avoid increasing the deficit, which could lead to higher interest rates and reduced investment. The discussion also covers the potential duration of tax cuts and the uncertainty it creates for businesses. Finally, it examines proposals for a territorial tax system and the role of Congressional Republicans in shaping these reforms.

Why is health care reform considered important in the context of economic growth?

• It helps in reducing taxes and spending.

• It ensures long-term corporate tax stability.

• It is the main strategy for capital accumulation.

• It directly increases GDP.

What is the proposed corporate tax rate mentioned in the tax reform outline?

• 30%

• 20%

• 25%

• 15%

What is a potential consequence of not achieving revenue neutrality in tax reforms?

• Stable corporate tax rates

• Higher interest rates

• Lower interest rates

• Increased business investment

How might companies react to a temporary 10-year tax cut?

• They will reduce their investments.

• They will immediately increase spending.

• They will expect it to be extended.

• They will assume it will end after 10 years.

What additional reform is suggested to complement tax reform?

• Entitlement reform

• Environmental reform

• Healthcare reform

• Education reform