News Summary

• In the context of the US economy, a cashflow tax would offer far-reaching benefits in promoting economic growth, taxing rents, and raising incremental revenue efficiently.
• Well-known concerns about complexity and fairness are easily addressed.
• After the US midterm election this November, Congress's economic-policy focus will likely turn to growth, AI’s impact on the economy, and deficit concerns.
• Lawmakers therefore should recognize that one policy tool can help to address all three: a cash flow tax.