My American Enterprise Institute colleague @kylepomerleau.bsky.social and I respond to the Wall Street Journal’s defense of section 899 of the reconciliation bill, which would impose retaliatory taxes on inbound investment.

A useful primer on the Section 899 changes in reconciliation (which would punish investors from Pillar II-compliant countries) by @stanveuger.bsky.social and @kylepomerleau.bsky.social. We don't always agree on international tax issues, but their analysis here is cogent and incredibly useful.

A crucial insight by @kylepomerleau.bsky.social and @stanveuger.bsky.social of AEI on the so-called "revenge tax": It could undermine foreign investment just to have this law on the books, regardless of whether and how Treasury exercises its broad discretion.

It's been a while (it's hard to keep up with multiple social media platforms). Here are a few recent blog posts: 1/

How do tariffs impact businesses, consumers, and the economy? And how will this administration's new policies affect the US? Join SPA's Project on Civic Dialogue as Mindy Herzfeld & @kylepomerleau.bsky.social break it all down. 📅 Tue, 4/8 🕒 4-6 PM ET📍 Kerwin 301 🔗american-spa.swoogo.com/pcdtariff

New working paper: A Mandatory High Tax Exclusion for GILTI I explore a reform that would reduce MNE profit shifting incentives without greatly increasing complexity and would raise either $68.5 or $72.9 billion over ten years. www.aei.org/research-pro...

Given the political costs of large, broad based tariffs and the quick push for a single bill, it seems increasingly likely we will see a clean-ish temporary extension.

CBO’s Analysis Shows Importance of Fiscally-Sustainable Tax Reform. www.aei.org/economics/cb...

Goods exemptions make no sense for climate policy, but for tariff policy, this is par for the course. "Please tax my import competition, but please don't tax my inputs!" www.eenews.net/articles/cas...

Good illustration of Trump's misunderstandings of bilateral trade deficits (at 1:15): "We're subsidizing Canada to the tune of over $100 billion a year. We're subsidizing Mexico for almost $300 billion." Yeah, that's just not how this works.

I think a border adjustment would be good policy, but I think this strategy is too clever by half. "It's actually protectionist, so Trump should love it" ended up killing it last time. www.msn.com/en-us/money/...

One for the Bluesky tax policy wonks!! Really enjoyed helping out with this project last year: it's a bipartisan collaboration of scholars @ AEI and Brookings on how we can make taxation of wealthy Americans fairer, more efficient, and less distortionary. Ungated PDF: www.aei.org/wp-content/u...

New paper with @billgale.bsky.social is no longer paywall'd: Efficient and Equitable Income Taxation of the Affluent We review 6 ways in which taxing high-income households impact economic efficiency. www.aei.org/articles/eff...

New, from me: Trump promised to raise taxes, but Biden and Congress could tie his hands www.latimes.com/opinion/stor...

This is true! But it doesn't change the fact that tariffs reduce real incomes, distort trade, etc.

First post! Today, I wrote about Trump's proposal to enact a 10% across-the-board tariff. www.aei.org/economics/tr...