Trump to propose massive tax cuts for businesses

White House officials on Wednesday were to release broad outlines of a tax overhaul that would provide massive tax cuts to businesses big and small.

And the president has hardly given the BAT much of an endorsement.

House Republicans have tried to downplay the significance of the gap between the GOP leadership's proposal and the president's. While they use numerous same tax breaks as corporations, they are taxed through the individual tax code, where the top rate is 39.6%.

It is likely the single most important thing he will do in his first year in office to determine our economic growth over the next several years.

Some have suggested that Trump and Congress do reform piecemeal, and focus on corporate tax reform first. The plan is widely expected to include a reduction in the corporate tax rate to 15% to 35%, a move that would greatly reduce federal revenue. "Our objective is simplifying personal taxes", he said.

"Some of the lowering in (tax) rates is going to be offset by less deductions and simpler taxes", Treasury Secretary Mnuchin said last week at a meeting of the International Monetary Fund and World Bank in Washington.

Further, his plan faces significant obstacles because of the need for Democratic support, although tax reform can avoid a potential filibuster through use of the reconciliation process in the Senate that places strict limits on any resulting increases in the deficit.

The official budget scorekeeper for Congress said Tuesday that even a more modest rate cut, to 20 percent, would add to long-term budget deficits - even if the tax cut is temporary. Our economy has grown at an anemic two percent average over the last 15 years. "Trump said he wants to make America great again and he wants to do one better". He also thinks a lower corporate rate would unite the Trump White House's business-leaning and nationalistic wings. Analysts said this was not expected to be in Trump's document.

Presidents frequently turn to executive orders when they struggle to advance their agendas through Congresses controlled by the opposition party. CRFB's Goldwein said that if Trump means for his business tax cut to apply to pass-throughs as well, it would take an additional $1 trillion to $2 trillion out of the federal revenue stream over the next decade.

Trump's announcement, however, could be a disappointment for investors seeking clarity.

Economists across the political spectrum say the January jobs belong to Obama's presidency. I authored a bipartisan bill previous year to allow repatriation of that capital at 6.5 percent, bringing home as much as 2 trillion in capital for job growth, and increased revenue. "Even seemingly simple approaches can be very hard to work out".

CROWLEY: Well, you know, I think the president's learning that the all-powerful position of the presidency is a powerful position, but it's not the end-all, that there is an equal co-branch of government called the legislature and that when it's properly exercised, it gives a role for the minority from time to time to play a role. For example, Trump has famously sparred with CNN White House correspondent Jim Acosta several times, though still answering Acosta's questions, despite labeling his outlet "very fake news".

The second key is whether it is simply tax cuts, or structural reforms to the way the US collects its taxes.

  • Leroy Wright