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    White House Will Not Release Its Own Tax Reform Plan

    White House Will Not Release Its Own Tax Reform Plan

    The White House still has expectations for tax reform, though.

    With Congress’s recess about to end, eyes have turned to tax reform. But in a surprise twist, the White House has decided not to write its own tax reform plan, according to President Donald Trump’s head economic aide. From The Financial Times:

    “The ‘big six’ have been meeting and have come up with an outline . . . and we have a good skeleton that we have agreed,” Mr Cohn said in a reference to the lawmakers, himself and Mr Mnuchin. “Now it is Chairman Brady’s time to get the [House] ways and means committee together to put flesh and bone on it, and they will do it next week when the House comes back into session.”

    Cohn also did not tell FT if the White House still insisted on a 15% corporate tax rate, but just that Trump wants it as low as possible so businesses have the ability to create jobs here. FT continued:

    He said the plan would preserve three of the biggest deductions for individuals: on charitable donations, mortgage interest payments and retirement savings. It would raise the standard deduction cap that applies to most tax filers, but would eradicate many other personal deductions, he said, adding that the White House also wanted to get rid of “death taxes”, Republican terminology for estate taxes, which will face resistance from Democrats.

    Mr Cohn said the White House would be “excited” if Democrats worked with Republicans on a bipartisan bill. But he said the administration would use a process called reconciliation — which prevents a filibuster in the Senate where the Republicans have a thin 52-48 majority — that would allow tax reform to pass with a simple majority, but only if the legislation is revenue-neutral within 10 years.

    The White House would also like a tax reform plan that included implementation of “a territorial system that would eliminate the need for US companies to pay additional taxes when they repatriate profits.” Cohn explained that these companies “have to pay extra taxes for bringing profits” back home, which is why they keep that money offshore. He continued:

    The administration wanted to impose a one-time tax on overseas profits to encourage companies to bring money home, he said, but he declined to confirm that it would be the 10 per cent floated by Mr Trump.

    “This is a big base-broadening exercise,” Mr Cohn said about the overall plan. “Revenue may decline in the medium term, but it will then explode for the government. When we grow the economy we will see substantial growth in revenue.”

    Despite no plan from the White House, Cohn told FT that Trump will wrap his agenda around tax reform ASAP:

    “Starting next week, the president’s agenda and calendar is going to revolve around tax reform,” Mr Cohn said in an interview. “He will start being on the road making major addresses justifying the reasoning for tax reform and why we need it in the US.”

    Trump will head to Missouri next week to begin the “major push on tax reform.”

    Press Secretary Sarah Huckabee Sanders said that a tax reform announcement could come out next week:

    “Tax relief and the focus on tax relief for middle class Americans is a huge priority for this administration and certainly going to be a big focus in the fall. And we’re going to look at a lot of different ways in which to talk about that and present that to the American people, working with Congress to make sure that that happens,” Sanders said.

    Over the last couple of months, the White House has released its goals for tax reform. Back in April, Secretary Treasury Steven Mnuchin and Cohn released a one-page outline, which included cutting the corporate tax rate to 15% and forming three tax brackets.

    Late last month, the big six that Cohn mentioned held a meeting at The White House over tax reform and released a statement:

    Above all, the mission of the committees is to protect American jobs and make taxes simpler, fairer, and lower for hard-working American families. We have always been in agreement that tax relief for American families should be at the heart of our plan. We also believe there should be a lower tax rate for small businesses so they can compete with larger ones, and lower rates for all American businesses so they can compete with foreign ones. The goal is a plan that reduces tax rates as much as possible, allows unprecedented capital expensing, places a priority on permanence, and creates a system that encourages American companies to bring back jobs and profits trapped overseas. And we are now confident that, without transitioning to a new domestic consumption-based tax system, there is a viable approach for ensuring a level playing field between American and foreign companies and workers, while protecting American jobs and the U.S. tax base.

    The biggest thing is that they all agreed to stop supporting the border adjustment tax.


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    Paul In Sweden | August 26, 2017 at 3:09 am

    As it stands, I got my non-Ginsburg-Clone Supreme Court appointment, the MSM exposed to an ever awakening public as Fake News and I expect by mid-term primaries the GOP ‘Quote’ ‘Quote’ ‘Conservative’ House, Senate, and Party Leadership fully recognized as USELESS and only Conservative regarding their own incumbency.

    The original framework was Executive, Legislative & Judiciary which has been perversely distorted since our nation’s founding. Congress drafts legislation and is suppose to control the purse strings which have apparently gone missing more than a couple of generations ago. The Executive branch is to provide direction in working with congress to bring about the wishes of the people.

    The people wanted secure borders, a Wall and the existing immigration laws enforced, ObamaCare repealed and replaced, the bloated government reduced which greatly involves draining the swamp.

    Trump from what I can see is staying within the defined boundaries of the Executive Branch and is highlighting the ineptitude of the GOP leadership, the failure of Obamacare and the fruition of what he said during the election campaign that Obamacare should probably just be left to implode and the DNC that solely installed it to beg for its repeal.

    Right now I choose to believe that Trump knows the huge opposition he faced from the entrenched DNC & GOP swamp during the election campaign has only increased and that Trump is letting out length of rope after length of rope.

    It is my hope that with his continued rallies around the nation will coalesce with Trump skillfully tying knots around the GOP leadership and the repugnant creatures of the Swamp during midterm primaries. I was a longtime native NewYorker and only knew Trump as a highly successful brash quintessential ‘NewYorker’ businessman through my own business associations and as a hardworking NewYorker in the business community. I only had peripheral knowledge of Trumps latter in life exploits on TV which as I found out more over time only lead me to recognize that it was just his schtick which he uses as a catalyst to achieve his goals. So I was not disadvantaged and handicapped by those that only knew his TV persona. In business people are allowed and often encouraged to dance on the edge(as I believe Trump is doing to the Swamp RINOs) so they fall and those that are waiting and preparing in the wings(West Wing) can be seen as picking up the pieces and taking leadership of the rebuilding.

    It has taken a long time for our Nation to get this far off the rails and nobody can say that the tracks are not littered with active saboteurs. Not for nothin’ but I am pretty sure I gave Obama more time than most RINOs and #NeverTrumpers have given Trump who remains the clear choice of the invigorated and increasingly pissed off(@GOP leadership) voter base that elected him.

    I was unwilling to once again see the GOP put forth a “True Conservative” Presidential Candidate that was unwilling and unable to fight against big government and ensure a DNC win or the destruction of the Supreme Court by Hillary. So I have my bare minimum from the election but like everyone else I still want to see all the rest of the slashing, burning and draining that we want to come about.

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