What Hill Republicans think of Trump's tax plan

Almost 100 days into his term, President Trump is looking for a win.

Democrats immediately seized on the plan's corporate tax cuts. It isn't. Like most things that involve Washington, it's complicated. Tax rate cuts are important and a driver of growth, but do not be hoodwinked: no way will they pay for themselves.

Let me begin with what I like about the tax plan.

"The biggest item that they're talking about eliminating are state and local income taxes and so all of us, here we are in OH, you may pay taxes to the City of Youngstown, to Ohio".

Those are all solid moves, as is his proposal to lower the corporate-tax rate from 35 percent to 15 percent - all aimed at spurring much-needed economic growth. For many of you with a home and mortgage, don't worry, the mortgage-interest deduction will stay, along with charitable-giving deductions.

But the plan offers no details on how Trump would offset these massive tax cuts, potentially adding trillions of dollars to the national debt over the next decade. Treasury Secretary Steve Mnuchin called it the "biggest tax cut in USA history". In financial disclosure forms, Kushner reported owning a stake in almost 300 different assets or companies collectively worth hundreds of millions of dollars, most of which he still owns.

That faster economic growth needs to be broadly shared so it lifts all incomes, improves everyone's wealth, and helps our fiscal situation.

It's up to Congress to pass a plan Trump will sign. It would be closer to 100 percent under the Trump plan.

The experts also cautioned that lowering the tax rate for "pass-through entities" - like sole proprietorships, partnerships, hedge funds and real estate concerns - could cause troubling distortions and further inflate the deficit.

Still, "I would never, ever bet against this president".

If Britain crashes out of the European Union without a new trade deal with its biggest export market, politicians have hinted that it could cut taxes on businesses even lower to boost investment.

But recently Ireland has come under fire from the European Union for arrangements that allowed Apple to dodge more than $14 billion in taxes, and the country was ranked the 6th worst tax haven in the world by Oxfam in a report late past year. This aspect is probably the most significant part of his plan.

Trump's proposals largely recycle his campaign plan, which tax analysts have said would give huge benefits to the wealthy, especially business owners, and blow a huge hole in the federal budget while doing little to boost the average Joe. Mortgages, auto loans, credit cards, home equity lines, and business loans will be much more expensive.

- Repeal of the Alternative Minimum Tax, which had forced wealthier individuals to pay higher bills, and the estate tax, which Cohn and others described as "the death tax".

"I think that's going to be a big problem for him with members of the Republican caucus who don't want to see that big increase in debt", said Robert Pozen, senior lecturer at the MIT Sloan School of Management.

The plan would exempt the first $24,000 of income from taxation.

An experiment because, Crowley argues, we don't know how the government plans to pay for it yet.

Any reduction to tax rates, particularly those on the wealthiest earners, would in theory weaken demand, given that the tax breaks would be less valuable. Those include elimination of the estate tax and the Obamacare tax on the wealthy.

Trump's tax plan does have an advantage over Ryan's and other plans, including those supported by some Democrats, that aim to be make up the forgone revenue.

Cohn and Mnuchin said the administration is working with Congress on a plan that will cut corporate tax rates to 15 percent, down from 35 percent, and shrink the current seven personal income tax rates to three - 10 percent, 25 percent and 35 percent. He'll need to look for his win elsewhere.

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