A Gift or a Headache? What's in Trump's Tax Reform Plan

Posted April 28, 2017

The billionaire businessman's plans were described as the "biggest tax cut" in U.S. history by American Treasury Secretary Steven Mnuchin and billed as a boon for ordinary businesspeople.

"We've been briefed on what they're going to do and it's basically along exactly the same lines that we want to go, so we see this as progress being made", Ryan said.

We do know, however, that at least one person will get a tax cut if the Trump administration's plan becomes law. A big one here would be the elimination of the ability to deduct state and local taxes, a move that could hurt residents of high-tax states such as California and NY.

Treasury Secretary Steve Mnuchin, in remarks Wednesday, channeled Trump's penchant for exaggeration. One analysis, by the bi-partisan Committee for a Responsible Federal Budget, estimates that Trump's tax plan would cost anywhere between $3 trillion and $7 trillion in lost revenue over the next decade.

"We are going to cut taxes for businesses to make them competitive and we're going to cut taxes for the American people, especially low and middle income families", said Gary Cohn, director of the National Economic Council.

Veronique de Rugy, senior research fellow at the Mercatuss Center at George Mason University, says the elimination of millions of people from the tax rolls would mean a big decline in federal revenue.

Carlson tried again: If you are making 500 grand a year, "do you see your tax rate move at all, effectively?" he asked. "So, by cutting business taxes, this will increase wages for American workers and create more jobs". He further described Trump's tax proposal as "mathematically impossible".

The proposal to slash tax on businesses to 15% would - with one fell swoop - give the United States the lowest headline corporate tax rate of any major economy in the world. "The same trickle-down economics that undermined the middle class are alive and well in the president's tax plan", said House Minority Leader Nancy Pelosi, D-Calif. After controlling for age and income, white households are three times more likely to take advantage of the tax break than black households, Trulia found in a report released last April.

"We will be back to you with very firm details", Cohn said. Mnuchin avoided sharing further details of the plan in the interview with "GMA" this morning. "The president has released plenty of information and I think it's given more financial disclosure than anybody else and the population has plenty of information", Mnuchin said Wednesday when pressed at the briefing by ABC News' Jonathan Karl on whether the US public has the right to know what's in Trump's tax returns.

Speaking Wednesday, Mnuchin also addressed the issue of the president's personal tax returns. Trump's plan calls for doubling the standard deduction to $12,400 for single individuals and $25,200 for married couples filing jointly, which consequently would raise the bar in terms of the amount homeowners need to pay in mortgage interest to qualify.