Earlier, Trump told the Associated Press that businesses and individuals will receive a “massive tax cut” in the plan.
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Also important, this is just more clear evidence that Trump has no idea what he’s doing, nor does the White House.
The Wednesday announcement will largely be about PR and positioning.
U.S. stocks closed higher on Thursday, as risk-on sentiment returned after a strong batch of corporate earnings and bullish comments on tax reform from U.S. Treasury Secretary Steven Mnuchin.
“Our findings suggest that tax progressivity changes influence pre-tax income inequality”, economists Enrico Rubolino of Uppsala University and Daniel Waldenstrom of the Research Institute of Industrial Economics wrote in a new study.
President Donald Trump signs an executive memorandum in the Oval Office of the White House. “I mean, they’ve done really, in many cases, the opposite of what they were supposed to”. This White House is going to insane lengths to make it look like Trump isn’t failing.
President Donald Trump, accompanied by Treasury Secretary Steve Mnuchin, gives a thumbs up as they walk at the Treasury Department in Washington, Friday, April 21, 2017. Pfizer executives braced themselves for blowback from the Obama administration – but were surprised by how aggressively the White House fought the deal. “Let’s call it a reciprocal tax”, Trump added. They’re even now saying the tax cuts will pay for themselves.
Congress recently failed in efforts to make good another Trump campaign promise to reform healthcare.
Second, allow businesses to immediately deduct the full cost of their capital purchases.
Third, impose a low tax on the repatriation of foreign profits brought back to the United States. “If you want to insist on having a tariff on our product, the president believes we should treat you in a reciprocal fashion”.
The third point already seems problematic.
President Trump signs an executive order on February 3.
Nevertheless, the tax review order Trump will sign enables his administration to conduct a review of the tax code that is independent of Congress.
The president’s budget director Mick Mulvaney said Thursday the administration plans to include $200 billion for new infrastructure spending in its fiscal year 2018 budget.
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Mulvaney also raised the possibility that the plan might not be revenue-neutral – meaning that it might provide for only temporary tax cuts that would have to expire after 10 years. Now it nearly definitely will, and that won’t sit well with deficit hawks. One of the memos orders a review of the law’s Orderly Liquidation Authority, a tool for unwinding companies on the verge of collapse.
