Budget experts had hoped for a tax overhaul that stoked additional economic growth by eliminating targeted tax breaks, which would allow for lower tax rates, a trade that economists generally believe increases efficiency in the economy. “The whole purpose of tax reform is to eliminate tax breaks to simplify the tax code and reduce rates,” said Marc Goldwein, senior vice president for the Committee for a Responsible Federal Budget in Washington. Medical expense deductions stayed, as did tax breaks for teacher supplies, student loan payments and tuition waivers for graduate students, all of which had been eliminated in the House plan. The only major provision eliminated was a special tax treatment for manufacturers. But that was the process we wanted.”Mr. Brady went on to imply that the special breaks were retained at the behest of voters.

Source: New York Times December 16, 2017 20:15 UTC