When it comes to reforming the federal tax code, there is still more work to be done.
A number of major provisions in the Tax Cuts and Jobs Act (TCJA) are scheduled to expire over the next eight years. Many of the expiring provisions should instead be made permanent.
At the same time, lawmakers should evaluate which portions of the Tax Cuts and Jobs Act ought to be improved.
More broadly, the TCJA did not address every area of the federal tax code in need of reform. Specifically, lawmakers should provide greater cost recovery for structures and reform the tax treatment of household saving.
- Many provisions in the TCJA are scheduled to expire
- The TCJA did not significantly improve the ability of businesses to deduct their investments in long-life assets
- The federal tax code is not neutral between present consumption and future consumption