Details and Analysis of the 2016 House Republican Tax Reform Plan
The House Republican tax reform plan would reform the individual income tax and would move towards destination-based cash flow taxation of businesses. The plan would significantly reduce marginal tax rates and the cost of capital, which would lead to 9.1 percent higher GDP over the long term, 7.7 percent higher wages, and an additional 1.7 million full-time equivalent jobs. The plan would reduce federal revenue by $2.4 trillion over the first decade on a static basis. However, due to the larger economy and the broader tax base, the plan would reduce revenue by $191 billion over the first decade.