If growth falls short, corporate taxes will go up
Republicans have been debating a trigger in the tax bill that would ensure deficits don't go up if growth falls short of target.
The aim is to have a provision that would automatically raise taxes if GDP didn't climb as much as forecast. What wasn't clear was who would pay.
The latest reports say the trigger would be connected to corporate taxes. It's not just a climb in the percentage of the tax rate but also a new tax on the difference between corporate book income and taxable income.
It's negative news for stock markets but my guess is that if the provision was ever necessary, it would be waived or repealed.
