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: