The president’s pushing a big tax overhaul – says he wants to “un-rig” the American economy. We’ll ask what he has in mind.
President Trump began rolling out his big pitch for changes in the American tax code yesterday in Springfield, Missouri. Shy on details. Big on promises of good times for all. At the heart of it, major tax cuts for American business that the president says will pay out for everybody. Republican health care reform foundered. Will taxes be easier? And who really wins? Up next On Point: The president’s call for a tax overhaul, and what it could mean. — Tom Ashbrook.
Leonard Burman, Institute Fellow at the Urban Institute. Co-founder of the Tax Policy Center, a joint project of the Urban Institute and the Brookings Institution. Co-author of Taxes in America, What Everyone Needs to Know. (@lenburman)
From Tom’s Reading List
Politico: Trump to seize populist mantle for pitching messy tax overhaul — “The Missouri speech will be the first in what is expected to be a heavy push by the White House to get the Republican Congress to pass a tax package including lower rates for corporations and individuals and send it to Trump’s desk to sign by the end of the year. Both the White House and congressional Republicans are desperate for a big legislative accomplishment before attention turns to the midterm elections next year, especially following the failure to repeal Obamacare.”
Tax Policy Center: The Implications of What We Know and Don’t Know about President Trump’s Tax Plan — “Using traditional budget scoring, TPC finds that the tax cuts outlined by the White House in April would reduce federal revenue by $7.8 trillion over the next decade. Including possible tax increases in the analysis lowers the revenue loss to $3.5 trillion. Under either case, the administration’s proposed tax changes would provide the bulk of the benefits to the highest-income households.”
The Hill: The Key To Passing Tax Reform: Keep It simple, Stupid — “First, cut tax rates for large and small businesses to 15 percent to make America competitive and create jobs. Second, repatriate $2.5 trillion of money held by American companies back to the United States at a 10 percent tax rate. Third, double the standard deduction for every family and individual tax filer. And that’s it. Hard stop.”