Analysis & Opinions - Financial Times

A Republican Tax Plan That Will Help the Rich and Harm Growth

| Nov. 05, 2017

Are shareholders really the most worthy recipients of a windfall?

With the release late last week of the Republican tax proposal, the most important debate on tax in the US in a generation is now in full swing.

Most reasonable experts will agree that tax reform has the potential to spur investment and raise wages, while at the same time simplifying the system and increasing its fairness and legitimacy. The right issue for debate is not the desirability of tax reform or even of business tax reform directed at spurring investment. It is instead the likely economic effect of particular proposals.

Unfortunately, the proposal from Republicans in the House of Representatives on offer now may well retard growth, reward the wealthy, add complexity to the tax code and cheat the future even as it raises burdens on the middle class and poor. There are three aspects of the proposal that I find almost inexplicable, except with reference to the power of entrenched interests.

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For more information on this publication: Belfer Communications Office
For Academic Citation: Summers, Lawrence.“A Republican Tax Plan That Will Help the Rich and Harm Growth.” Financial Times, November 5, 2017.

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