13-05-2025
- Business
- Wall Street Journal
One Cheer for the House Tax Bill
The House Ways and Means tax bill is out, and it resembles the rest of Trump II economic policy: The best parts are from the first term, and the worst are from the second. The overall bill is largely a political document focused more on massaging a hundred constituencies than helping the economy grow.
The good news is that the bill makes much of the 2017 tax reform permanent, notably the lower income-tax rates across tax brackets. The best growth provision restores 100% expensing for equipment purchases, which was gradually phasing out, but only through 2029. It also expands bonus depreciation to new factories through 2028. Too bad these non-permanent provisions will inevitably steal some growth from the future.
