Republicans flesh out tax cut proposals

The unified tax proposals released by Republicans today offer more detail than before, but there are still a number of missing pieces that make it hard to estimate the overall cost of the plan accurately. Our long-held working assumption is that, by early next year, Congress will pass a fiscal stimulus worth around $2trn over the next decade, equivalent to almost 1% of GDP. Today’s proposals could cost up to $3trn. But this is just an initial proposal and, if the passage of earlier large tax bills is any guide, the tax cuts will be scaled back before a final bill is passed.