Sábado, 16 Diciembre, 2017

Trump to propose massive tax cuts for businesses

Andrew Harnik  AP File Andrew Harnik AP File
Manuel Armenta | 26 Abril, 2017, 11:37

Trump has said an overhaul of the tax code is one of his biggest priorities, but top advisers have refused to provide details so far of how he will usher in the biggest tax cut in USA history - which he has promised - without piling on trillions of dollars in new federal debt.

The Treasury Department has macroeconomic models that might be used for dynamic scoring, said Mazur, a former assistant secretary for tax policy at Treasury.

Chye-Ching Huang of the Center on Budget and Policy Priorities added: "During his campaign, President Trump".

"The tax plan will pay for itself with economic growth", Mnuchin said.

Most economists say it's unlikely that tax cuts can generate enough growth to prevent the budget deficit from rising.

Senate Finance Chairman Orrin Hatch said that a 15% corporate tax rate would be problematic because it would increase the deficit and run into parliamentary problems if Republicans try to pass their tax bill under a procedure that lets them avoid a filibuster. Some analysts said this may consist of a proposal to cut the corporate rate to 15 percent, cap the individual tax rate at 33 percent, repeal the estate and alternative minimum taxes and cut taxes for the middle class.

The president on Wednesday plans to make public the broad outlines of what he wants to change in the tax code, though the details likely will be left until later negotiations among congressional leaders and officials from Treasury.

White House staffers provided few details at Monday's press briefing.

"We are poised, but we are in a geopolitical world, some type of event could happen, but I think we are positioned well", he said in response to a question from Lagarde at the conversion held on the sidelines of the annual Spring Meeting of the International Monetary Fund and the World Bank. And even members of the GOP who agree that tax cuts can significantly boost growth have acknowledged that any big tax cut would require raising other revenue or finding budget savings.

Mnuchin and National Economic Council Director Gary Cohn are set to meet with top Republican lawmakers Wednesday to discuss the administration's tax plan. But the concept hasn't gained much support among Republicans in the House or Senate - and retailers, carmakers and oil refiners that rely on imported goods have said the tax would raise prices on consumer goods.

But while he supports lowering the corporate tax rate, Cole said he "wouldn't want to do it at the cost of exploding the deficit".

The difference in government revenues could be as much as $2 trillion over a 10-year period depending on how large an impact the tax-cut package has on the economy, Mnuchin said. Under conventional "static scoring", which doesn't incorporate growth estimates, "there will be short-term issues", he said.

But House Republicans are working on their own plan that has smaller tax cuts.

"We expect the plan to provide broad outlines and principles but be short on specifics", Mills wrote.

Last month, Trump signed an order calling for a review of Obama's Clean Power Plan, which required states to slash carbon emissions from power plants. In contrast, Mnuchin's comments suggest the administration is looking for a 50 cents-plus payback.

And if Trump backs away from the controversial border-adjusted tax proposal, he risks damaging relations with Ryan, who has staked considerable political capital on the measure.