How To Make Tax Cuts That Survive Reversal

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Fundamental tax reform is going to be tough to pass with opposing factions in Congress and with particular interest groups defending cherished tax breaks. Significant tax code changes may upset industries, and threaten the economy.

If Republicans succeed in ramming through massive tax cuts for the wealthy using the nuclear option, Democrats may win back the reins of government in 2020 and reverse it all. Significant uncertainty in the tax code can freeze tax planning and the economy. It’s more prudent to make a few tax code changes with bipartisan support. Consider the example of Obamacare taxes rammed through the Senate by Democrats. Republicans may repeal Obamacare taxes, and that means taxpayers wasted significant money and time on Obamacare tax compliance activities.

Here are some changes to the tax code that could receive bipartisan support in 2017…