A Tale of Two Tax Plans

What Trump and Ryan Get Wrong

Taxman: Ryan discussing the Better Way plan with reporters, Washington, D.C., September 2016. GARY CAMERON / REUTERS

Republicans have long panned the U.S. tax system; now they have a plan to change it. In fact, two plans. The first comes from Congress, the second from the White House. The congressional “Better Way” plan, championed by Paul Ryan, the Speaker of the House, and Kevin Brady, chair of the House Ways and Means Committee, would create a business tax system that has never existed anywhere in the world. The White House plan would enact a massive tax cut, mostly for the wealthy.

Each plan aims to reform both the individual and the business parts of the U.S. tax system. But although the two plans offer similar rate cuts for individuals, the proposed reforms are very different on the business side. The White House simply wants to slash taxes for all businesses. The Ryan-Brady plan would convert the current corporate income tax into a border-adjusted cash-flow tax—

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