Ongoing Obamacare

The inability of Republicans to repeal and replace Obamacare with the AHCA via the relatively easy reconciliation process, bodes poorly for tax reform. This is because the $337 billion in savings over the next decade from gutting Obamacare, was key to “paying for” a substantial reduction in tax rates without dramatically raising the deficit. Now, expect a much-reduced tax cut and nothing approaching a full overhaul of the tax code.