Trump Tax Overhaul Progressing, Cohn Wants Before End Of Year For 2018 Midterm Campaigns

Politico reports that the Trump team and congressional leaders, who have nicknamed themselves the ‘Big 6,’ are making ‘significant strides’ in overhauling the U.S. tax code beyond the six-paragraph framework presented in July, the goal being to push tax reform through before the end of 2017 in advance of 2018 midterm campaigns.

“We’ve got a great, I would say, ‘skeleton’ for tax reform.” –Gary Cohn, Director National Economic Council

The buts and bolts are said to include: 

• Capping the mortgage interest deduction for homeowners
• Eliminating the ability for people to deduct state and local taxes
• Eliminating the ability for businesses to deduct interest
• Allowing small businesses to deduct investments such as new equipment or facilities
• A corporate tax rate in the 22 – 25% range (higher than the 15% Trump wants)
• Possibly taxing 401(k) contributions up front – an idea which would raise billions of dollars in the short term
• Mandatory repatriation of corporate cash held offshore at a low tax rate

“Yes, we will be open to losing tax revenues in these early years,” Kevin Brady, chairman of the Way and Means Committee, said at a tax event at Ronald Reagan’s California ranch.

It is unclear whether or not the suggested cuts will be permanent, or temporary with a sunset provision similar to many of the cuts signed into law by President George W. Bush in 2001 and 2003 – only to be made permanent by President Obama in 2012.

“A mix of permanent and temporary cuts could, on paper, look to the budget scorers like something that would not add to the deficit over the typical 10-year window and would allow politicians more cover to pass such a package.” –Politico

Hurry up! 

One of the few things Republicans agree on when it comes to the Trump agenda is the need for tax reform. Via Politico: 

Republicans want the fall to be all about taxes, if they can help it. It seems like their best and perhaps only route toward a major legislative victory before the fever of the 2018 midterm elections takes hold.

“People are feeling optimistic because they do not see failure as an option. They’ve put all of their eggs in one basket now, and that basket is tax reform,” said one source familiar with the administration’s tax talks. “The fear of failure on this will cause people to agree with things they may not normally agree to.”

The White House has reportedly created a ‘mini war-room’ inside of its existing communications shop to address taxes, in which Comms director Hope Hicks and Treasury official Tony Sayhegh will team up to sell the plan to the public.

“The question now is whether this is becoming more of a policy pursuit or a political success,” said one Republican close to the administration. “Now, it looks like the latter. The president campaigned on signing the biggest tax cut in history, and he’s on track to do that for the middle class even if he has a compressed time frame to get it done.”

If you enjoy the content at iBankCoin, please follow us on Twitter