Treasury Secretary Mnuchin and Economic Director Gary Cohn Unveil President Trump’s Tax Proposal…

Today Treasury Secretary Steve Mnuchin and Economic Director Gary Cohn held a briefing to outline the tax proposal of President Trump.  The overall plan is essentially the same as the plan he proposed in the campaign with some slight modifications on rates etc.

The biggest structural change is political and regional in the current proposal because the rates are lowered, but deductions are removed – including deductions for state and local taxes.  People who live in states/municipalities with income taxes, and who earn enough to carry a tax liability, would see their ability to deduct those state taxes removed.

Because of the UniParty nature of congress; and specifically because special interest lobbyists will write the final tax plan (if one ever surfaces) CTH is not going to spend much time in the analytics of this.  Personally I highly doubt there will EVER be a comprehensive tax reform package even created; the UniParty [lobbyists/Big Club] will not allow their control over taxation to be diminished.

Tax reform is a noisy issue sure to fill lots of media stories, but the end result will be no action.  If a legislative bill is ever created we’ll discuss then.  More than likely we will see small, individual tax bills targeting specific aspects of current tax policy.

Here’s two articles explaining the possibilities against the backdrop of this proposal:

Zerohedge analysis and CNN Money analysis.

Advertisements
This entry was posted in Big Government, Big Stupid Government, Legislation, media bias, President Trump, Uncategorized. Bookmark the permalink.

114 Responses to Treasury Secretary Mnuchin and Economic Director Gary Cohn Unveil President Trump’s Tax Proposal…

  1. plasmacutter says:

    This all looks like mass noise designed to distract from the fact he’s caving on the wall funding.

    I wonder what will happen to this country once the invaders have taken over 3 or 4 more states california-style.

    Will there be war in the streets or will “principled conservatives” tuck their tails and hand the country over to be mexico’s colony?

    Liked by 1 person

  2. fleporeblog says:

    Here we go again! The “Big Club” will stop it. Just like they would stop TPP. Just like they would stop Common Core (which went by the waste side today). Just like they would stop NAFTA being renegotiated (the previous thread shows that our President is a step ahead and will invoke the termination clause which congress can’t stop). Just like they would push for amnesty for all illegals (that will never ever happen while our President is in office). That wall will have to have it last brick (cinder block) layed before even considering an immigration bill for DACA. In the meantime he will not only have gotten rid of the criminals, but he will be working his way through item # 3 which are those that illegally used public assistance (welfare, medicaid, IRS). By that time, the majority will self deport.

    Call me a fool but the fact that not a single penny will go towards the Obamacare subsidies, it will all be but dead. Folks will have a nice shiny card with no one to accept it. I would be completely shocked if by the end of May the revised AHCA won’t be signed into law by our President. I could go on but I think I have made my point. The Big Club has fu….ked with the wrong LION!

    Liked by 32 people

    • FofBW says:

      The old well has been dry for years, yet folks keep going back hoping for something. Now we have a well digger digging an entirley new well.

      Liked by 13 people

    • ivehadit says:

      THIS!^ Flepore
      And I would imagine we can put lots of pressure on congress to make the reforms happen!
      CALL CALL CALL! The RNC and Congress…
      We must not be defeatists! 🙂

      Liked by 6 people

    • yohio says:

      Only thing I’m disagreeing on, there is a time limit on doing the AHCA and it’s way before May. In fact I think like a week left. Plus SD says there is No Plan it’s all an act

      Liked by 1 person

    • duchess01 says:

      Oh, flep! You certainly have a way with words – one might think you have a direct phone line to President Trump – even if you did not – you definitely could run his re-election campaign with ease – the problem is – his list of accomplishments will be so long – we won’t be able to fit them on 8.5 X 11 handouts or even billboards – anyway – knowing you – you will figure out how to do it – 🙂

      Liked by 9 people

    • Dekester says:

      Thanks again FB.

      As is often the case your enthusiasm and positivity shine through, and there truly is so much to be grateful for.

      Liked by 4 people

    • We agree fleporeblog! 👍🏻

      Liked by 3 people

    • FL_Guy says:

      The thing I find fascinating is that people tend to overlook the fact that President Trump, and many in his cabinet, ARE members of the big club and they know everything about everyone that is in it. In my opinion, most of the big club members are stupid people who lucked into or inherited their money, e.g. Zuckerburg, Bloomberg, Bezos etc. who are promoting parasitic behavior that will ultimately destroy the host; that’s We the People. President Trump and his chosen associates are not stupid and realize that destroying We the People is not good for the USA or even the world. They have joined together to deworm the big club to stop destruction of the host. President Trump is a genius and I’m confident that in 4 years he will have accomplished most of his major goals. His next 4 year term will be even more amazing on the level of the Renaissance.

      Liked by 4 people

      • fleporeblog says:

        FL_Guy great point that many of us overlook in terms of him and members of his administration being a part of the Big Club before his presidency.

        Liked by 2 people

      • FL, You should pick different names for people who “lucked into or inherited their money.” No matter how much Zuckerberg, Bloomberg and Bezos may or may not have stored up or inherited or whatever, the businesses they founded and the stock thereunto attached have made them 100s of times richer than they were when they started out.

        These guys did all the work at the beginning – the original thinking, the planning, the sweeping and cleaning, the pitches to venture funders…. so please find another villain.

        Like

        • LEET says:

          “Investingforone”

          Hmmmm…..and yet all of them do ENGAGE IN PARASITIC BEHAVIOR ! Therefore, the name given describes them perfectly. They use their vast wealth and influence to push (manipulate) for open borders, globalism, balkanization of nations, all which benefit them in terms of power and money but to the detriment of the citizens of the sovereign nations.

          A better idea for you would be to find some new heroes to admire.

          Like

    • Stringy theory says:

      Excellent analysis and I think younare exactly right. Trump plays the long game.

      Liked by 1 person

    • Evelyn says:

      What they are trying unsuccessfully to F* with is the plans of the Lion of Judah, although they don’t know that yet. Because they don’t understand the nature of the wall they are pounding their heads against, they keep coming back for more and flaming out spectacularly.

      I believe the things we are seeing transpire are a reflection of what is happening in the unseen spiritual world, where a great harvest of souls is taking shape. All astute analysis, doubts and cynicism aside, if the tax reform package is part of His plan so that America is equipped to turn back to its old ways and then spread the Gospel worldwide, it will come to pass. The Goliaths in the land are irrelevant.

      Liked by 1 person

  3. Publius2016 says:

    The compromise is set up very simply and elegantly: Deep Blue States keep their State/Local income tax deduction and we get an American First Tax reform with three tax brackets 12%,25%, and 35%, elimination of marriage tax penalty, and deductions for charity, home interest, and family creation while businesses get 15% tax rate. It’s going to happen!

    Liked by 6 people

    • CharterOakie says:

      I think the intent is that the Blue States can keep their state and local taxes, but they would no longer be subsidized by federal tax deductibility of those state and local taxes.

      Which means the Blue States will have to justify their higher tax burden or lose businesses and residents to other states.

      Liked by 10 people

      • holymercenary says:

        I can’t believe that state and local taxes are even tax deductible!! What an utterly ridiculous concept – TAXES are TAX DEDUCTIBLE???

        So the federal government is basically subsidizing all of the blue states who overtax their population. That needs to be eliminated immediately.

        I do not understand Sundance’s comment that nothing will happen, however. Then what is the point of all this? How will Trump truly change taxes? How will we get this economy going? We’re talking about a bill that MIGHT pass in the House and that’s not even counting what the Gobbler might do.

        President Trump is doing literally anything in his power to help the nation. Congress is doing nothing besides CRA’s, which is a small help.

        I don’t know how, but I know Trump has a plan to get his stuff through Congress. Or he might be setting the whole thing up for 2018 and banking/hoping on a political slaughterhouse for the Dems. All I know is that I trust in Trump. God is with him.

        Liked by 2 people

      • Doug says:

        the whole premise is that exactly. Basically if you remove the deduction it eliminates the double dipping these states are allowed to do.. because all of a sudden the citizens of those states now pay the full local and national tax. Citizens will be very angry and many will move to states without income taxes at that point.

        Its always funny to me when states claim (especially high tax ones which tend to be blue) that they dont get as much tax money back as they send to feds. if you include the money they get directly by having high income taxes the outcome changes… they wouldnt be able to have these high income taxes if the citizenry had no deductions

        Liked by 3 people

        • Publius2016 says:

          Yes, it’s a federal passthrough to the Deep Blue States. That’s why the deal is there to be made. High tax states like NY and California make up much of the Federal Budget including Social Security and Medicare. Most of the financial capitals of the country (San Fran, NYC, DC) have this deduction.

          Liked by 1 person

        • Kaco says:

          Will that end up being the California invasion of red states?

          Like

  4. citizen817 says:

    And with this…the economy goes Boom!
    More money in the pocket. More discretionary spending. More Everything.
    I don’t think the President will settle for less than 3.5% GDP in his first year.

    Liked by 9 people

  5. Sundance, way too cynical IMHO , but I guess we will see

    Liked by 2 people

  6. yohio says:

    Without wanting to be a downer I have to agree with Sundance on this one. Ask yourself has the Uniparty done one thing for Trump or us yet? So why now? What incentive do they have?

    Liked by 2 people

    • Neural says:

      It’s a bit early now, but look for the uniparty members to start doing things that appear contrary to their globalist agenda. Elections are coming.

      Liked by 3 people

    • G3 says:

      President Trump won against the Uniparty.
      I’m still extremely hopeful.
      The incentive is the potential economic growth after O’s historic/criminal lack of growth.

      Like

      • yohio says:

        Yes, but does the Chamber of Commerce give a crap about the Economic Growth if detrimental to their Globalist Agenda? They sure as all He** don’t give a Crap about OUR BOTTOM LINES

        Like

        • LoveofUSA says:

          At best, U.S. Chamber of Commerce has been exposed. At least, we now know they don’t care about us.
          I get the feeling there is something bigger brewing, a bigger picture we haven’t figure out what President Trump is putting together. It is what many of Treepers here keep saying-the LONG-game, hidden just out of sight.

          We just need to stay alert and watch. Pray and get proactive whenever the President needs it. And keep track of members of Uni party/Deep State.
          Stay the course.
          Full Speed ahead. MAGA

          Like

  7. The Demon Slick says:

    I like it. When people in states with higher tax rates can deduct those tax payments from their federal tax returns, two things happen. One, everyone else is subsidizing the high tax rates in those states.
    Two, it removes some of the pressure that those states legislatures would normally feel for having such high tax rates.
    I believe that with the deductions removed, state tax rates will be competitive again. Each state is free to set their own rates, but the rest of the country is no longer going to pay for it.

    Liked by 11 people

    • Niagara Frontier says:

      You might be surprised by the actual data. States with higher income/property taxes, generally bluer states, tend to be the states that receive a smaller share of the federal expenditures back compared to what was sent. There are many studies that show this. Here’s just one that makes for interesting reading.

      https://wallethub.com/edu/states-most-least-dependent-on-the-federal-government/2700/#main-findings

      Like

      • Doug says:

        while thats the case you arent including the money the states get to keep by having higher tax rates. In other words we arent counting the funds the state gets to raise by having the rest of the country cover these high income taxes through the deduction subsidy. the deduction if accounted for in real terms would make that report change

        Like

        • Niagara Frontier says:

          Point well taken. I’m digging further since I need the data for another project. It will always be difficult to make state by state comparisons since every study uses different metrics.

          I suppose my point in response to Demon Slick was that’s impractical to generalize on this topic.

          Liked by 2 people

          • graphiclucidity says:

            Be sure to check out exactly what programs and subsidies they’re counting.

            I see people from California and New York claim all the time how much they’re subsidizing us poor hicks out in the boonies. Highly-industrialized/urbanized states likely do get less back in some areas – education, healthcare, transportation funds coming from fed.gov, etc.. What I’m betting these studies are never counting is how much more is coming back to those states for food stamps, welfare, SSI/Disability, Pensions (Employee and Veterans), Medicare/Medicaid compared to smaller and rural states who by the lower population and cost of living, alone, are getting back far less from the Feds.

            That’s the study I want to see, especially for California.
            Total tax and fee payments to Feds vs. Total disbursements back from Feds.

            I’m tired of seeing arrogant progressives from Cali claim that Silicon Valley, San Fran, and L.A. are supporting the entire country and getting back nothing in return, and that if they did get back all they’re entitled to then CA wouldn’t have such a black hole in their budget.

            I know it’s all lies, damn lies, and statistics but they love to pull out an article from a leftist rag and throw it around like gospel so they can sucker punch all the freeloading white trash in flyover country they’d like to see vanish and replaced with hipsters, yuppies and Valley Girls.

            Liked by 1 person

  8. jnearen2013 says:

    While I cannot disagree, it is a disappointment. Another UniParty defeat of the Presidents agenda that will result in economic stagnation. Different president same result.

    Liked by 1 person

  9. snarkybeach says:

    Is Ryan waiting for Pence to be sworn in as Drudge hints at in a recent Twitter post? He sure seems to be favoring the Democrat agenda, IMHO.

    Like

  10. Beenthere says:

    Bottom line: Will Warren Buffet, George Soros & other super rich like them be adversely affected by this tax reform? Probably not. As Cohn & Mnuchin emphasize, its about creating jobs (hopefully decent paying) & growing the economy, not screwing the super rich.

    Liked by 4 people

    • wheatietoo says:

      Yep.
      Simple fact is…rich people create jobs.

      So you have to create incentives for them to invest in Job Creation, not punish them for it.

      Liked by 4 people

    • The cycle goes like this. “They”, the fed/wall street/CoC- “Big Club” allow the President to create an environment that creates more jobs, more “wealth”, and it goes on for a while nicely… and then “They” decide there are enough trillions to be taken again and voila… manufactured economic crisis appears. And then, those trillions “magically” disappear while we the peasants suffer. Seriously, the super rich never “get screwed”.

      As SD stated already, uniparty will not allow their control over taxation to be diminished. Even though they know it is literally and truly a scam and that they are through duplicity denying the peasants a legitimate chance in the pursuit of happiness (property).

      Actuality isn’t always a happy thing, but it is actuality and should be dealt with accordingly.
      The Founders fought for liberty over much much less that we are putting up with.

      Liked by 1 person

  11. I have a feeling that the R’s are going to say this looks great but we’ll have to do entitlement reform to get it deficit-neutral. Hopefully Trump has this mapped out.

    Liked by 2 people

  12. Pam says:

    Liked by 2 people

  13. MaineCoon says:

    Headline is: “What Hill Republicans think of Trump’s tax plan: ‘Not even close’ to reform”

    Hey Hill R’s. I bet you are closer than you can even imagine. He has a magic wand!

    (I didn’t read the article. Waste of my time.)

    http://www.cnn.com/2017/04/26/politics/congress-tax-reform-analysis/index.html

    Liked by 1 person

  14. tax2much says:

    Sundance is correct. The uniparty only responds when recession makes it difficult for incumbents to win re-election. Since, no danger signs are on the horizon they will be content to let President Trump improve the economy incrementally like he has been doing. The Congress will be like a boat anchor for the Trump agenda.

    Liked by 2 people

  15. The Trump Tax Plan ELIMINATES DEDUCTIONS for State, Local and Real Estate Taxes.

    • NO MORE deductions that force responsibly-frugal States to pick up part of the Liberal Tab!

    • SUDDENLY, Liberal-Land will have to carry the FULL BURDEN of their government overspending, waste, fraud, abuse and identity-politics kickbacks!

    • Patience to those in high-tax geographies: This is your ONLY way to force cuts in the scale, scope and cost of government!

    Liked by 7 people

  16. BG2 says:

    Terrific innovative thinking.
    Of course, not a chance it will get through Congress. Best not waste too much time on it.
    Hilariously Congress will probably do confected hysteria over the resultant extra current account deficit forward….as if the $22 trillion they already allow to run doesn’t exist.

    Like

  17. BG2 says:

    Terrific innovative thinking.
    Of course, not a chance it will get through Congress. Best not waste too much time on it.
    Hilariously Congress will probably do confected hysteria over the resultant extra current account deficit forward….as if the $22 trillion they already allow to run doesn’t exist.

    Like

  18. bayrat65 says:

    I have read all comments so far on this, I just don’t trust the rhino’s at all. If they get anything done, It will really surprise me. I trust our president to try, he can’t do it alone. We have to vote alot of these swamp critters out!!! The 2018 and 2020 elections are so important.

    Liked by 3 people

    • LoveofUSA says:

      We need to start looking for President Trump-supporting candidates to replace those Swampy Slime now/soon. 2018 elections is 19 months away. Finding and prepping the candidates takes time. Where is SteveInCO and Martin to do the countdown?

      Like

  19. citizen817 says:

    Liked by 4 people

  20. BG2 says:

    The home building industry might well be the major collateral damage. Still, the US must (?) be the only country on earth that allows interest deductibility for personal housing.
    How many overseas bases does the US maintain? Over 200 comes to mind.
    Spending is the secret Don.

    Like

    • Reality Wins says:

      Then the collateral damage will be to all of the illegal invaders that have been taking American construction jobs for the last 30 years.

      Like

    • Switzerland does. I have a friend there who could pay off his loan tomorrow, but he keeps renewing it to get the interest deductions. I got nowhere arguing that he was still paying interest he wouldn’t have to pay if he didn’t have the loan. There is a cool deal though – you can deduct the cost of maintaining and improving your home. Cool, eh? This explains why most residential property is very well maintained everywhere in the country..

      Like

  21. citizen817 says:

    Liked by 4 people

  22. citizen817 says:

    Liked by 4 people

  23. fangdog says:

    At some point American citizens has to ask themselves, “What is it our elected American officials never do what is good for me”?

    Liked by 2 people

  24. Pam says:

    Liked by 2 people

  25. Trialbytruth says:

    my two cents
    This plays to the base well and to the blue collar side of the dems

    This does create shinny noise Trump has been able to do many things while everyone looks at shiney

    He is preparing an EO on NAFTA which the house would not move on he can drop that while they are distracted

    To negotiate you have to have a starting point.TADA

    NK is still brewing and the average MSM informed citizen is clueless and yet drills in Hawai. What else was happening today?,.

    Like

  26. missmarple2 says:

    Mnuchin said mortgage interest and charitablecontributions would still be deductible.

    They are doubling the standard deduction, so many people may end up just using that rather than itemizing.

    I think people should be happy that he is attempting something that hasn’t been done since the 80’s. Also, if this is passed, it will be very hard for anyone to roll it back, as rolling it back would mean adding back in all sorts of things, none good for the average person.

    Liked by 2 people

  27. Kaco says:

    My father is at zero tax liability because of his home care deductions and gets everything back. I wonder if he will have to pay state and local now? I’m not a tax person and this isn’t my area, I just do his deductions and give it to his accountant.

    Like

  28. rashamon says:

    Remember that The Federal Reserve Bank and the Income Tax were passed by incredibly wealthy men who had just made tons of money from the Industrial Revolution and banking, and, who after making promises and wheeling and dealing, said few would ever have to pay income taxes (and not many citizens knew about the privately-held Fed until much later). Frankly, we should go back to tariffs and consumption (sales) taxes.

    http://www.theospark.net/2017/04/income-taxfrom-rico.html

    Liked by 1 person

  29. Rip Tide says:

    Does anybody else live in a State where you cannot itemize deductions on your State return like Michigan?
    It’s a sneaky way of the State getting a higher effective tax rate. So, in Michigan we have a 4.25% tax rate, but because I cannot use my itemized deductions my effective tax rate is about 7.2% at the State level. The effective rate is your total tax divided by your taxable income by the way.
    Any other States pullin that trickery?

    Like

  30. Rip Tide says:

    And your taxable income at the State level is higher than your taxable income for Federal calculations too.

    Like

  31. C-Low says:

    Nothing legislative will be done that is of consequence until Ryan/McConnel are replaced with un-ashamed America First representatives and the Filibuster is removed.

    No this will not be easy and I think I hope pray Trump is not fooled but just letting Ryan/McConnel show everyone their inability/unwillingness to actually do walk the talk. I am praying that he is just waiting a year to then transition to naming, blaming, slamming, putting them in the cross fire box with the Dems for a full attack in the primary/midterm.

    Like

  32. tonyE says:

    I’ve been thinking that President Trump ought to start spending some serious time in either starting a new Political Party or somehow flushing the GOP.

    Just ignore the Dems.

    Like

  33. Donna in Oregon says:

    I started reading cold anger today. 2018 will be a very good year for Patriots….not so good for the Uniparty.

    Liked by 1 person

  34. Linda says:

    I can think of a really easy way to make this tax proposal revenue neutral – start taxing the Federal Reserve for their earnings.

    Like

  35. Pam says:

    Like

  36. Rick says:

    Where were the people who are demanding that we come up with a way to pay for tax cuts in the last 8 years when the national debt doubled?

    Like

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s