INTreasury Secretary Steve Mnuchin told Fox News' "Tucker Carlson Tonight" that President Trump's tax reform plan would amount to a "middle-income tax cut" and would "make business competitive".
Leonard Burman, co-founder of the Tax Policy Center and expert at the Urban Institute said in an email to ABC10.
The administration has said its tax cuts will spur growth, bringing in tax revenues to make up the difference, a calculation known as "dynamic scoring" which the Trump administration supports.
House Republicans are calling for a border adjustment tax to be incorporated in the plan. In a news conference with reporters, Mnuchin declined to answer how the cuts could benefit the president or his businesses, saying, "What this is about is creating jobs and creating economic growth". If it passes into law, the estate tax will be gone, and so-called pass-through entities like hedge funds would enjoy almost a 5 percent tax cut. The practice is particularly popular in states such as New Jersey with high income and property taxes, and is used mostly by high-income earners.
If enacted, the repatriation tax holiday would produce a one-time surge in government revenue.
Economists fear it will happen again.
Outlined at a White House press briefing by Treasury Secretary Steven Mnuchin and Gary Cohn, director of the president's National Economic Council, it would reduce the number of individual tax brackets to three, as well as eliminate most tax deductions other than for home mortgages, charitable contributions and retirement savings.
"A major undertaking like tax reform takes the bully pulpit of the presidency to start a debate with Congress and the American people".
U.S. stocks pared gains yesterday after the plan was unveiled.
Asian shares eased from a near two-year high on Thursday as a long-awaited USA tax cut plan failed to inspire investors, though sentiment remained supported by global growth prospects and receding worries about political risks in Europe. "Not a surprise that companies leave trillions of dollars offshore", he said.
Franco hits grand slam, Phillies beat Marlins 7-4
It is those afternoons that make you shake your head about Franco, who is now in his fourth season in the big leagues at age 24. Franco also hit a grand slam against the New York Mets on April 12 in a 5-4 home loss. "That's an adjustment I've had to make".
QUOTEWORTHY: "As expected, the Trump administration rolled out the tax reform roadshow on Wednesday", said Stephen Innes, senior trader at OANDA.
Also unclear is how current tax breaks for child care will be restructured.
Proponents say state and local deductions give cities and states more leeway to raise money because selling a tax increase is easier for lawmakers when some residents can offset it on their tax returns.
The president's tax plan matched up closely with the promises he made during his 2016 election campaign.
President Trump's outline for federal tax reform attracted the full range of reactions from New Hampshire political observers, with economic conservatives hailing it as "bold" and "long overdue" while Democrats panned it as a "corporate giveaway" that would balloon the federal budget deficit. Companies in the S&P 500 index paid an average tax rate of 29.06 percent for 2016, Standard and Poors said.
But with Republicans controlling Congress and the White House, there is no appetite at either end of Pennsylvania Avenue to tackle the long-term drivers of debt " Social Security and Medicare. That rate now sits at 39.6 percent, and cutting it further is unlikely to have the same on-the-ground impact on taxpayers' decisions.
Further reductions in rates are "just not going to have as big an impact as some of those early, dramatic fixes did", Holtz-Eakin said. "This bill is about creating economic growth and jobs". Now, as the baby-boomer generation hits retirement, the labor force is shrinking, limiting the prospects for the economy.
However, many economists are skeptical about that argument, as the US economic growth will average about only 1.9 percent over the next ten years, according to the nonpartisan Congressional Budget Office. "I would urge caution".
But sweeping reform that includes some targeted rate hikes would probably be the kind of overhaul to appeal most broadly to American voters - some of whom believe that higher earners enjoy too many entitlements with too little to pay on tax day, and others who simply do not believe that supply-side economics squares with fiscal responsibility as much as certain Republicans have long insisted. Economists debate how successful they were in stimulating the economy, but almost all agree that the cuts ultimately added to the debt as they failed to pay for themselves. Investors also were awaiting a policy statement from the Bank of Japan that's expected to provide fresh insights into the state of Asia's second-biggest economy. The economy grew at an average rate of 2.1 percent annually during his eight years in office, though there were external factors - including the September 11, 2001, terrorist attacks and the ensuing economic aftershock.
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