With the current economy chugging along and the markets seemingly functioning on autopilot, tax reform, and certainly tax cuts, might not be the best top priority, according to some economists.
"I don't think that given the strength of the labor market and the tightness of the labor market that the economy needs any fiscal stimulus," said Ed Yardeni, an economist who is supportive of a simplified tax code and lower corporate taxation in general. "It ain't broke so there's no reason to fix it."
Congress left Washington for its summer recess with several items waiting on its return: the debt ceiling, government funding and tax reform chief among them. Administration officials have talked about getting taxes at the top of the agenda before the end of the year.
Yardeni and other economists acknowledge tax reform overall would be a long-term benefit. U.S. corporations face higher taxes than most other parts of the world and the code is complex and riddled with loopholes.
Taking away those loopholes and lowering the rate would free up money to invest in business and possibly encourage more companies to stay in the U.S. rather than seek to move their headquarters abroad.