Official estimate could upend Trump tax plan before release
- Author: Zachary Reyes Apr 26, 2017,
Apr 26, 2017, 21:35
"So when Trump said 'plan" on Friday, the market knew he didn't really mean it.
In its report on Friday's signings, Vox said the set of actions was "a clear flashing light that the notion of a Trump-era GOP as an economically populist "workers" party' is dead, and business interests rule the roost". "I don't think we decided that".
Trump's willingness to let deficits run higher also could hinder the passage of tax cuts that are permanent. He told The Associated Press in an interview that elements of his plan will be released as early as Wednesday.
With Goldman Sachs back in control of the White House, it should come as a surprise that the Dodd-Frank Wall Street reforms are the second major target of the Trump regime, after the Affordable Care Act.
Donald Marron, who served on former President George W. Bush's Council of Economic Advisers in 2008 and 2009, said the administration's seeming estimate of the favorable feedback effects from lower taxes was "surprisingly large", though he cautioned he hadn't seen the details of the plan.
"I'm not convinced that cutting taxes is necessarily going to blow a hole in the deficit", said Sen.
Asked if that would include rules against tax-driven foreign corporate deals known as inversions, Mnuchin said: "It's one of the significant things and one of the things we would be looking at".
The Tax Policy Center, a nonpartisan tax group affiliated with the Brookings Institution and Urban Institute, has estimated that Trump's corporate tax proposal, as outlined during the campaign, would cost US$2.4 trillion over 10 years.
White House officials have said there are several basic principles to their tax plan. He has also said he wants to create some sort of "reciprocity" tax that imposes a tariff-like tax on imports from countries that have tariffs against the United States. An analysis that doesn't factor in economic growth forecasts is called a "static" assessment. "Under dynamic scoring, this will pay for itself, under static scoring, there'll be short term issues". A number of conservative budget experts - including key congressional aides who write tax law - have said that the White House has an overly rosy view on what the economic impact of its tax cuts would be. Without that revenue, or something in its place, it may be hard for the plan to achieve crucial revenue neutrality. Reconciliation requires only a simple majority of votes, but the legislation can not increase the deficit over a ten year period.
Still, lawmakers from both parties have said the corporate tax rate must be reduced to help USA companies compete with firms headquartered in other countries and to prevent US firms from moving overseas.