Having promised "the biggest tax cut in history," and seemingly desperate for a win (given his folding on the funding of the wall), one wonders why President Trump has delegated the announcement of his Tax Reform plan to Treasury Secretaty Steven Mnuchin and Chief Economic Advisor Gary Cohn. Reduction, repatriation, simplification, and de-itemization appear to be the cornerstones.
What we think we know so far: (via CNN's Jim Acosta)
Personal Tax Reform
– Provide Tax Relief for Middle Income Families
– Simplify the Tax Code by Moving from 7 to 3 brackets (35, 25, 10)
– Modernize Tax Code to Help Families Struggling with Child and Dependent Care Costs
– Repeal 3.8% Obamacare Tax on Investment Income
– End Alternative Minimum Tax
– Eliminate Itemized Deductions Except Mortgage Interest and Charitable Contributions
– End the Death TaxBusiness Tax Reform
– 15% Corporate Rate
– Small Business Owner/ Operators Eligible for Business Rate
– Territorial Tax System to End Penalty on Companies Headquartered in the U.S.
– Onetime Tax for Repatriation to bring back Trillions of Dollars from Overseas
– Eliminate Tax Breaks for Special Interests
Who also asks a very important question – With The White House targeting deductions to help pay for tax plan (but mortgage/charitable are protected), how does this not blow up deficit?
We look forward to Steve Mnuchin and Gary Cohn explaining it all (with as many superlatives as possible we are sure).
Perhaps the most concerning aspect is the apparent expectations management that is being undertaken this morning:
The White House's presentation will be "pretty broad in the principles," said Marc Short, Trump's director of legislative affairs.
In the coming weeks, Trump will solicit more ideas on how to improve it, Short said. The specifics should start to come this summer.
Short said the administration did not want to set a firm timeline, after demanding a quick House vote on a health care bill and watching it fail.
But, Short added, "I don't see this sliding into 2018."
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The biggest question is – will this be enough to satisfy the market?
via http://ift.tt/2q6F9gS Tyler Durden