Trump says he’s willing to consider raising gas tax

President Trump stated last September during a debate against Hillary Clinton that not paying income taxes, “Makes me smart”.

Three illustrations make the point.

But with few fresh details about Trump’s plans and an uncertain time frame, some at the conference expressed concern that the generally optimistic atmosphere might begin to fade. Taxes are just one factor and they are often less potent than advocates advertise.

But the proposal would also eliminate the practice of deducting state income taxes and local property taxes from federal income taxes, and that could harm taxpayers in states with high local taxes, like NY.

The Institute, which is the research arm of the State University of NY, said elimination of the deduction for state and local taxes could “fuel a taxpayer revolt” at the state and local level, or it’s “possible that nothing would change and these taxpayers would simply face significantly higher costs”. The standard deduction, for those who do not itemize, would be doubled.

It is clear that Trump’s tax cut plan is poorly planned and does not take many factors into consideration.

Mnuchin also said the administration would “like to see bipartisan support” for the plan. After the extensions expired, Obama signed into law a new tax plan that increased the rate for the top tax bracket.

Think of a middle-class couple with three kids. It’s a bad idea to acknowledge the influence of special interests over the tax code before negotiations for tax reform have even begun.

“I like [the tax plan] but you have to pay for it either with a new tax like the border adjustment tax, which is dead, or spending cuts which Trump has ruled off the table”, Stockman explained.

The administration claims it will pick up a lot of revenue from a proposal to slap a 10 percent tax on un-repatriated foreign-source income. A small decrease in taxes is beneficial for the economy in the sense that it acts as an expansionary fiscal stimulus by increasing the incentive for people to work.

Don’t hold your breath.

What can save the economy is the Trump administration not garnering enough support for the plan, and with only 52 Republicans with a seat, it’s hopeful the proposal won’t reach the 60 votes needed to pass this plan.

Buy some more red ink.

Comparing this roll-out to the tax-reform bill enacted more than 30 years ago is instructive.

The plan includes lowering the business tax rate from a high of 39.6 percent to 15 percent. Since many hedge funds and private-equity firms are partnerships, their executives would qualify for the corporate rate under the administration plan.

At its heart is a dramatic reduction in the corporate tax rate, which, at 35 percent, is among the highest in the developed world – though companies pay far less, of course.

Case in point: his recent interview with Bloomberg. He was the executive editor of Bloomberg News, before which he was a reporter, bureau chief and executive Washington editor at the Wall Street Journal.