Taxing Travails

The Senate Republican failure to pass a “skinny” Obamacare replacement means a revenue loss of probably $150 billion over a decade. Having already nixed the border adjustment tax means the loss of an additional $1 trillion over a decade. Absent this $1.15 trillion, cutting taxes and keeping it revenue neutral or close to it will be impossible. In its place, expect a small, short-term tax cut that increases the deficit.