We can expect the White House to release, this coming Wednesday “broad principles and priorities” of their new plans to overhaul federal taxes in the US, according to a White House. This downplays expectations that the Trump administration will reveal crucial details at the foundation of the new plan.
Visiting the US Department of the Treasury, on Friday, President Trump commented, “We’ll be having a big announcement on Wednesday having to do with tax reform. The process has begun long ago but it really formally begins on Wednesday.”
An anonymous White House official made sure to note that while there will certainly be an announcement on Wednesday, we can expect that it will be broad in nature.
This anonymous officials said, “[W] e will outline our broad principles and priorities. We are moving forward on comprehensive tax reform that cuts tax rates for individuals, simplifies our overly-complicated system and creates jobs by making American businesses competitive.”
Trump, himself, has said, “This is really the beginning of a whole new way of life that this country hasn’t seen in many, many years. We’ve lifted one terrible regulation after another at a record clip from the energy sector to the auto sector.”
Essentially, we might also be able to speculate that, under President Trump’s new tax plan, the corporate tax rate would fall to 15 or 20 percent; some argue that, perhaps, it may not fall any lower than 28 percent (as a means for avoiding a tax revenue shortfall).
Manhattan Institute senior fellow Diana Fuchgott-Roth notes, “We’re up in the air on tax reform, so it’s a good idea to repeal [the tax inversion ban in the interim].”
She goes so far as to argue that even if a US company were to move abroad, its lower tax tab would allow for higher overall earnings. Fuchgott-Roth contends, then, that this might actually translate to more available money for expanding US capacity, which coul then lead to more jobs.
Finally, some officials with the Trump administration said they will propose putting some limits on the tax breaks, but it is not expected to be a major part of the bigger plan. Instead, the officials say, the plan will assume future economic growth resulting from these tax cuts will generate several trillion dollars in new revenue.