Tax Code Modernization

The Accord closes twelve specific provisions in the existing tax code that create structural avoidance channels inconsistent with the lifecycle capture principle. Each closure is scored independently.

Scoring Endnote 4: Base-Broadening Revenue

Combined permanent closures: ~$0.30T/yr at steady state.

Transitional: §106 employer health exclusion produces ~$300B/yr that phases to zero as VHA-E replaces employer plans (Years 1-5).

Depreciation reform: the $90B estimate assumes firms currently expensing ~$450B/yr. At 5-year declining schedule, ~$200B of deductions shift to later years, producing ~$90B in present-value revenue gain. During recession, Productivity Turbo restores 100% expensing—this is counter-cyclical fiscal policy, not a permanent subsidy.

⚠ Charitable cap at $19K is politically sensitive. Nonprofit sector will oppose aggressively. Revenue estimate of $55B assumes 85% compliance; actual may be $40-50B if creative workarounds emerge (e.g., bunching strategies, donor-advised fund restructuring).

⚠ Carried interest reform revenue of $18B assumes full enforcement. Current carried interest reporting is opaque. Actual may be $12-20B range.