(Late) Monday Smackdown: Robert Lucas Pretends... Edition

Donald Trump's corporate tax cuts can't pass Congress

Should-Read: George Callas: Donald Trump's corporate tax cuts can't pass Congress: "Here is a data point for folks... http://www.slate.com/blogs/moneybox/2017/04/25/donald_trump_s_corporate_tax_cuts_can_t_pass_congress.html

...A corporate rate cut that is sunset after three years will increase the deficit in the second decade. We know this. Not 10 years. Three years. You could not do a straight-up, unoffset, three-year corporate rate cut in reconciliation. The rules prohibit it. You might be able to do two years. A two-year corporate rate cut—I’ll defer to the economists on the panel—would have virtually no economic effect. It would not alter business decisions. It would not cause anyone to build a factory. It would not stop any inversions or acquisitions of U.S. companies by foreign companies. It would just be dropping cash out of helicopters onto corporate headquarters...