“The ability to pay for the tax cuts matters because of Senate rules requiring legislation that adds to the federal deficit after a decade to expire.”
WASHINGTON — The Republican tax plan is built around a goal of cutting corporate taxes, but party leaders now face a key question: Can they afford to make those changes permanent?
Business leaders and conservative economists say a permanent reduction in the corporate tax rate, as opposed to a temporary, 10-year cut, is the best way to spur robust investment and job creation as well as generate the kind of economic growth Republicans say will pay for the tax plan.
. . . But the entire package is expected to cost an estimated $5.6 trillion over the next 20 years — an amount that economists say would be hard to offset through economic growth alone.
Click to read the complete article. By ALAN RAPPEPORT — The New York Times.