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Taxes

Trump Promises to Release Tax Reform Package Next Week

Written by Philip Hodges

In an interview with The Associated Press, President Trump said that he intends on releasing his plan for tax reform as early as next week on Wednesday. He said that the tax reform plan will include massive tax cuts for businesses and individuals, adding that they’d be “bigger I believe than any tax cut ever.”

According to the President the tax reform package would be released next week on “Wednesday or shortly thereafter.” The AP reported:

Treasury Secretary Steven Mnuchin initially set a goal of getting tax reform passed by August, but that deadline has slipped. Mnuchin now says the administration still hoped to get a bill passed well before the end of the year.

Not long after Trump’s interview with AP, the White House ‘clarified’ what he actually meant. CNBC reported:

President Donald Trump promised to make an announcement about much anticipated tax reform next week, but it was not immediately clear how much he would reveal or what form it would take.

“We’ll be having a big announcement on Wednesday having to do with tax reform. The process has begun long ago but it really formally begins on Wednesday,” Trump said at the Treasury Department on Friday.

Earlier, he told The Associated Press that businesses and individuals will receive a “massive tax cut” under the package. He would not provide details of the plan, saying only that the tax cuts will be “bigger I believe than any tax cut ever.”

The Dow Jones industrial average pared losses, briefly turning positive, following the news.

Then, the White House issued a subsequent statement to CNBC that appeared to soften that timeline: “The President was saying what we’ve been saying all along, that he wants to do tax reform as quickly as possible while still doing it right.”

In an op-ed in the New York Timesauthors Larry Kudlow, Steve Forbes, Arthur B. Laffer, and Stephen Moore – all economic advisors to Trump’s presidential campaign – think the GOP is doing too much and making tax reform too complicated. Their advise is brief and to the point: “Keep it simple, stupid.”

They said that was the main problem with trying to repeal and replace Obamacare, and completely overhaul the healthcare industry, all in one fell swoop, “instead of keeping the focus on repealing Obamacare.”

Tax reform is similar. “Don’t try to rewrite the entire tax code in one bill,” they advised. They continued:

Instead, the primary goal of Mr. Trump’s first tax bill should be to fix the federal corporate and small-business tax system, which has made America increasingly uncompetitive in global markets and has reduced jobs and wages here at home. The White House and the Treasury already have a tax plan that we were involved with last year. The three most important planks of that plan are:

First, cut the federal corporate and small-business highest tax rate to 15 percent from 35 percent, which is now one of the highest corporate tax rates in the world.

Second, allow businesses to immediately deduct the full cost of their capital purchases. Full expensing of new factories, equipment and machinery will jump-start business investment, which since 2000 has grown at only one-third the rate recorded from 1950 to 2000.

Third, impose a low tax on the repatriation of foreign profits brought back to the United States. This could attract more than $2 trillion to these shores, raising billions for the Treasury while creating new jobs and adding to the United States’ gross domestic product.

Liberals often talk about ‘leveling the playing field’ when it comes to tax reform. They want to tax the rich more. Why not cut taxes across the board, leaving more money in people’s pockets? Tax revenues would go down, and the government would be forced to cut countless and needless departments.

The views expressed in this opinion article are solely those of their author and are not necessarily either shared or endorsed by EagleRising.com


About the author

Philip Hodges

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