Eichengreen Says Can Do Tax Reform, Not Simply Tax Cuts

The video discusses the challenges of tax reform in the context of high debt-to-GDP ratios, emphasizing that while tax reform is possible, tax cuts are not advisable. The Senate's tax plan is analyzed, highlighting potential pushback on eliminating deductions and the need to delay corporate phase-ins. The discussion also covers investor expectations for lower corporate tax rates and a simpler tax code, though achieving both seems unlikely.

What is the main concern about implementing tax cuts given the current debt-to-GDP ratio?

• It will decrease government revenue.

• It will increase the debt burden further.

• It will reduce foreign investments.

• It will lead to inflation.

What is a significant challenge faced by the Senate's tax plan?

• Opposition from international markets.

• Pushback against eliminating deductions and exemptions.

• Lack of support from the President.

• Increased corporate tax rates.

Why might the corporate phase be delayed according to the discussion?

• To simplify the tax code.

• To increase government revenue.

• To accommodate pushback on deductions and exemptions.

• To align with international tax standards.

What do investors and CEOs primarily want to see in terms of corporate taxation?

• Lower corporate tax rates and a simpler tax code.

• Higher corporate tax rates.

• A more complex tax code.

• Increased government spending.

What is the likely outcome regarding corporate tax rates and the tax code?

• A simpler code will be achieved, but not lower rates.

• Neither lower rates nor a simpler code will be achieved.

• Only lower rates will be achieved, not a simpler code.

• Both lower rates and a simpler code will be achieved.