The Joint Committee on Taxation has released its score of the Senate Finance Committee Chairman’s Mark tax reform proposals. Although formal bill text is not expected to be available prior to next week, the Joint Committee presumably relied on the detailed section-by-section summary released by the Joint Committee last night.
Under JCT’s analysis, the proposals are expected to reduce federal revenues by $1.495 trillion over the 2018-2027 budget window, within the framework established under the governing Joint Budget Resolution. The JCT’s estimates do not extend to periods beyond the budget window, during which the bill’s effects must be deficit neutral in order to be passed by majority vote under the rules for reconciliation. The Congressional Budget Office will also provide additional analysis based on the JCT’s estimates to account for other effects of the bill, such as the increased debt service resulting from the deficits during the budget window.