US: Tax cut implications of pulling the AHCA - BNPP

Paul Mortimer-Lee, Chief Economist at BNP Paribas, explains that withdrawing the AHCA, the Obamacare repeal and replace bill, has damaged the President’s authority and momentum and has similarly scarred the Republican leadership.

Key Quotes

“A tax reform will create losers who will be emboldened that the President can be faced down when confronted by strong opposition.”

“The need for success on the tax reform front has risen, but there is less cash to play with now.”

“The temptation to go with simpler reforms (e.g. ditching the Border Adjustment Tax) has risen, as has the temptation to go for sunset provisions and to modify filibuster rules.”