Tax Fact: Permanent Tax Reform Generates More Growth

Permanent changes to the tax code spur significantly more economic growth than a temporary rate cut. By permanently lowering the corporate rate to 15%, for example, the gross domestic product in the U.S. will expand by 3.9% more than it would under the current tax code over the next decade, according to the nonpartisan Tax Foundation. But if Congress passes a temporary rate cut that expires in 10 years, economic growth won’t be much better than it would under the current system. In fact, a temporary rate cut would actually generate slower growth in the final years than the existing corporate tax rate.

"We need to do permanent tax reform in the United States. The way you do permanent tax reform in the United States is you have it balance over 10 years."- National Economic Council Director Gary Cohn