US Tax Cut Plan Has Some Serious Flaws

Trump's tax reform proposal may have some serious unintended consequences for US consumers, from pension savings to the housing market

John Rekenthaler 13 December, 2017 | 10:13AM

There's nothing wrong with Congress's goals for its tax-reform proposal, the Tax Cuts and Jobs Act. The bill seeks to end corporate America's incentive to stash assets overseas; to simplify the tax code; and to reduce the effect that tax policy plays on personal decisions, such as buying a home.

There is no doubt that the tax-reform proposal will reduce home values

My concerns lie not with which taxpayers Congress rewards, but instead with the bill's details. These concerns do not seem to be shared by the lawmakers, who are racing to complete the bill before the holidays. To that end, Congress has bypassed the Treasury department, which customarily runs proposed legislation through a battery of financial tests and pushes back with pointed questions.

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John Rekenthaler

John Rekenthaler  John Rekenthaler is vice president of research for Morningstar.

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