Alan Auerbach

Some tax law provisions could make for a tougher recession

Alan Auerbach quoted by Bloomberg BNA, March 13, 2018

“Legislators somehow feel that NOL recovery is sort of an inappropriate gift, whereas it really is a way of cushioning the effects of cyclical income,” he said, calling the provision a “money grab.” “Tightening the rules—getting rid of the loss carrybacks, allowing only 80 percent offset against taxable income in the future—I think that is not good for cyclical industries.”

5 questions for Congress on tax reform

Alan Auerbach writes for Bloomberg, Oct. 27, 2017

The U.S. business tax system sorely needs reform, particularly in the way it deals with multinational corporations. But we must pay close attention to what Congress and the Trump administration propose. Change in the guise of reform has the capacity to make things worse, and the secretive, often chaotic nature of the current process provides ample opportunity to do so.

Beware of Trump’s claim that wages will soar after he cuts taxes

Alan Auerbach quoted by The Washington Post, Sept. 27, 2017

Trump and Congress have to get the tax recipe right if they really want to have a good chance at boosting middle-class wages. Auerbach says there are two things lawmakers should do.

First, they need to ensure the 2017 (or 2018) tax bill doesn’t add to America’s $20 trillion debt. Second, they need to find ways to incentivize business investment.

Trump pushes tax cuts, hopes he isn’t ‘disappointed’ by Congress

Alan Auerbach quoted by The Washington Post, Aug. 30, 2017

Alan Auerbach … said some of the ideas Trump floated during the speech could boost economic growth and potentially grow wages, but it would depend on how the tax changes were designed and structured. He also said it would depend greatly on whether the tax plan would add to the government debt. Trump didn’t mention his plan’s impact on the debt or the deficit during the speech. “It’s hard to have a consensus about a policy about which you know very little,” Auerbach said.

How a tax plan unites progressives, the Koch brothers and Walmart

Alan Auerbach quoted by San Francisco Chronicle, April 15, 2017

Alan Auerbach … dismissed the $1,700 increase as “silly” and “outside the range” of economic projections of what the tax might do. … “It would encourage companies to make their products in America,” said Auerbach, who thinks it would also convince some Silicon Valley companies, such as Google and Apple, to stop basing operations in countries like Ireland, which have much lower corporate tax burdens.