Larry Summers on Corporate Tax Cuts, Trump Claims

The transcript discusses the impact of corporate tax cuts on economic growth, highlighting the challenges and distributional effects. It explains the territorial tax system and debates the fairness and economic efficiency of tax policies. The conversation also touches on revenue-neutral corporate reform and the importance of political norms in tax reform. Finally, it covers central bank policy and its market implications.

What is a potential downside of corporate tax cuts according to the discussion?

• They have no impact on corporate investment.

• They can result in higher income inequality.

• They always lead to increased economic growth.

• They are guaranteed to pay for themselves.

What is the main idea behind territorial taxation?

• Eliminating all corporate taxes.

• Taxing only profits earned within the U.S.

• Taxing all global profits of U.S. companies.

• Increasing taxes on foreign operations.

What is a key feature of a revenue-neutral corporate tax reform?

• It focuses solely on cutting corporate taxes.

• It eliminates all business deductions.

• It encourages bringing back capital from abroad.

• It increases the budget deficit.

Why is fairness considered important in tax reform?

• It ensures that only the wealthy benefit.

• It is solely a moral issue.

• It has no impact on economic growth.

• It contributes to economic efficiency and morale.

What is the potential impact of the ECB's bond-buying program adjustment?

• It could destabilize the euro area.

• It will have no effect on the market.

• It will lead to immediate economic growth.

• It is expected to be carefully measured and gradual.