JCT puts up hurdle to tax cut without revenue offset

April 25, 2017
A letter from the JCT to Speaker Ryan states that even a temporary corporate tax rate deduction that sunsets within 10 years could result in “nonnegligible revenue loss in the tax years immediately following the budget window notwithstanding the temporary nature of the tax reduction.” Such revenue effects would present a challenge for passing a non-revenue-neutral corporate tax cutunder the current reconciliation rules.