In other words, there will be NO ANALYSIS on the effects of this UNTIL IT IS LAW.
“Trust us.”
Shuck and five, man, shuck and jive. It’s not that you can’t answer the question, you won’t. Because the answer is bad.
The following are excerpts from several paywall newspaper articles that to me hit the highlights of what was said by Cohn/Munuchin. There was more detail in the business press.
There’s an important caveat at the end of this.
Begin newspaper stuff:
Officials didn’t say how much the plan would reduce federal revenue or grow the debt, or what income levels would encompass the three new tax brackets.
Cohn: “Our tax plan is a big leg of that stool. It’s a big leg. And in many respects, he thinks it’s the most important leg.”
Business groups were opposed.The National Association of Realtors called the proposal a “non-starter,” and that it would remove tax incentives for people to buy homes because of changes to deductions.
WSJ: ‘Fist bumps’ at hedge funds over Trump’s tax plan treatment of Carried Interest Income
Republicans, who upbraided Obama for planning to raise the deficit, must decide whether to back a plan budget experts say will add to record levels of government debt. The Committee for a Responsible Federal Budget concluded the plan would lead to a loss in government revenue by roughly $5.5 trillion over 10 years.
Democrats must decide whether to negotiate with a president who is threatening to pull away tax revenue that pays for many social programs.
Cohn said they would preserve tax breaks for mortgage interest, retirement savings and charitable giving. But almost all others would be jettisoned, including the tax deduction people claim for the state and local taxes they pay each calendar year, a provision that saves taxpayers more than $1 trillion every 10 years. Taxes are particularly high in states such as California and New York, so the change could be deeply felt there.
Trump’s proposal would lower the corporate tax rate from 35 percent to 15 percent. It would also allow millions of small businesses, structured in such a way that they are affected by the individual tax rate, to use the 15 percent rate as well. These businesses, known as “pass-throughs” or “S corporations,” are often small, family-owned firms…they can also be large law firms and lobbying shops, with highly paid top executives. Mnuchin said special protections would ensure that the wealthiest of these earners don’t take advantage of the 15 percent rate, although he didn’t say how the White House would do this.
"We expect that trillions of dollars will come back on shore and will be reinvested here in the United States, for capital goods and job creation,” Mnuchin said.
This controversial process is called “repatriation”. Critics allege that the money is brought back and then paid out in dividends to shareholders instead of being used for hiring and investing.
“This is what’s important to get the American economy going,” Mnuchin said. “So I hope [Democrats] don’t stand in the way. And I hope we see many Democrats who cross the aisle and support this. Having said that, if they don’t, we are prepared to look at the reconciliation process.”
Republicans hold 52 seats in the chamber, and without 60 votes, Trump and his fellow Republicans would only be able to pass more narrowly tailored, temporary cuts.
Holtz-Eakin(wingnut ex-Bush Budget director)“Proposing trillions of dollars in tax cuts and then casually asserting that such a plan would pay for itself with growth, as Treasury Secretary Steven Mnuchin said, is detached from empirical reality.”
Holtz-Eakin:“Sailing straight into a sovereign debt crisis is not a pro-growth strategy. What firm would want to headquarter in a country that is toying with financial meltdown accompanied by emergency austerity and tax hikes?”
End newspaper excerpts. The following is my opinion.
Most important additional info that I heard: Jim Cramer got an opinion from a tax expert stating that to pass any of this throough reconciliation “in a meaningful way” the cuts would need to “sunset” in TWO YEARS. TWO YEARS, NOT TEN. NOT A TAX OVERHAUL, A TAX HOLIDAY.
BUSINESSES WON’T plan based on that time frame. If it’s true, to them the whole thing is smoke and mirrors.
Stool, indeed. Mr. Cohn: Hold that thought.
I am a duplicitous lying sack of shit.
I have no shame
This and the ability to push a Trump fantasy as reality is what got me the job.
We’re all rich so we really don’t give a fuck about some grovelling chump making 60k a year
Loser or what
We all sit around and have a good laugh after the presser
These Trump sociopaths are so completely out of control they don’t even know it. So drunk with power, they think they can say anything and it won’t matter.
Still, I continue to believe there will be a backlash in 2018. People aren’t completely dumb. They know when they are being had.
Until Trump releases his tax returns I’m opposed to any of his tax proposals—they sound to me as benefiting Trump more than anyone else.
Scott Pelly is becoming my favorite of the evening newscasts . They really don’t like T-rump and led last night saying there is no plan , it is just a concept not backed by any facts
As far as what the outcome of this will be, move to Kansas if you really want a sneak preview…
Greed and ignorance has always been the most dangerous of legislative cocktails…
Thank you for these excerpts, and your comments. Let’s by keep widening the lens I am trying to use to make sense of the impacts of this “plan” which looks pretty atrocious to me.
The pass-through stuff especially. Anyone want to form an LLC? Important to note, also, that Clinton supported a huge tax cut on re-patriated profit as well. It’s a huge boon.
And now imagine the same lines delivered by a stand-up comic…
WEll, as I mentioned they have a little more detail but they’re doing a shell game with everybody. It’s like the North Korea thing, except it is a cover to do the repatriation, give the hedge fund guys a tax break, and whatever else they can put over.
Here’s a chart from Kevin Drum over at MoJo showing actually productivity growth rates, since 1972, along with Drumpfie/Mnuchin/Brownbackian projects of productivity growth if’n we just give those rich folks and corporations a bigger tax break.
If this isn’t magical thinking, I don’t know what is…
Oh, they consulted with “hundreds” of business leaders, did they? Well, okay then!
So, as I’m reading here, it looks like the medical expense tax deduction is also going to be eliminated? It’s already inadequate in that you can only take off that amount that’s over 7.5% of your income, but if you’re in the middle of a major medical problem, even if you’re insured you can easily exceed that standard by a lot (given that the deductible and co-pays on top of your premiums can EASILY run into thousands and thousands of dollars, not to mention your dental bills and vision care).
Noting that the Ruby Red majority states have crashed and burned when Republican Ideology meets reality.
Yes absolute power corrupts absolutly
If a middle class tax cut/relief - is the Number One priority - then why are the bulk of the provisions geared towards corporations and really, really wealthy folks?
Looks like the number one priority is steeply increasing income inequality and building a permanent, unpenetrable wall around those at the top.
A “giant postcard”? Tell that to Turbotax. But hey, the post office will love this.
Matt, thanks for responding. has anybody called Stan Collender to see what he thinks? During sequester he knew more than anybody. To see anything from him now, I would have to subscribe to Forbes. Yecch.
I was very curious to observe the speaking Mnuchin after reading of his financial crimes and observing him near the Trump monster in trendy shades like a Euro greaser…
Call an exorcist, stat. This spotty dude’s carrying at least 10 demons inside that odd head and maybe more…start recording if he starts talking in Sanskrit…
ahem…This guy blithely lied under oath in front of the Congressional Committee voting him into the Cabinet. Please notice how easily he lies to a bunch of reporters.