The Trump administration unveiled their proposal to overhaul the tax code on April 26, outlining sharply lower tax rates but fewer tax breaks. By balancing the two, some Republicans aim to cut tax rates without decreasing the total amount of revenue taken in by the federal government. There are advantages and drawbacks to both the tax cut and tax reform approaches. The issue with tax cuts, however, is that most budget experts say tax cuts lead to a drop in revenue collected by the government — especially if they aren't offset by cuts to loopholes. The GOP would need only a simple majority of Senate votes to pass temporary tax cuts, but those would expire after 10 years.

Source: Washington Post June 06, 2017 16:30 UTC