Trump tax plan leaves Congress, Ryan with heavy lift

Getting to the bottom of President Donald Trump's tax plan is hard because it exists so far as bullet points on a single page, with no detail. The administration has proposed three tax brackets with rates of 35%, 25%, and 10%, down from the current 7 brackets, "double the standard deduction that Americans can claim on their tax returns and [a] repeal [of] the estate tax and alternative minimum tax". Former Labor Secretary and economist Robert Reich tweeted that a cut to the corporate tax rate was "truly dumb" and the claim that the plan would pay for itself "is supply-side nonsense".

Treasury Secretary Steven Mnuchin appears on a television screen on the floor of the New York Stock Exchange, Wednesday, April 26, 2017.

The administration is eager to get the foreign funds back into America, one source told me.

Especially when you factor in the tax cuts to corporations.

American Airlines fell like a stone with its retreating almost 7% despite an in-line set of revenue figures for the first three months of the year, as the carrier announced a pay rise for its crew members. So when will you tell us how you will pay for it. Here in the real world, smart, pro-growth tax cuts can at best cover a fraction of their costs.

These days, though, so many Democrats act as though economic growth is a relic of the past, like sepia-toned photographs or top hats. And that's is what the president is committed to.

Essentially, Trump is betting big that large across-the-board tax cuts will pay for themselves by stimulating economic growth. "I think these proposed changes, if accepted, will have a very positive impact on the promotional products industry as a whole", he said. The small portions of Trump's tax returns that were leaked to the media showed that he may, in fact, be among those who might need to pay the tax one day.

"We think that will be sweeping reform", he said during the press conference (see his comments below, beginning at 10:40).

Mnuchin: And that's something we've said and that's something that we're confident with.

It was during the 1980 presidential campaign, that Republican candidate George H.W. Bush jumped all over Republican candidate Ronald Reagan for what Bush termed Reagan's "voodoo" economics - suggesting that tax cuts to the rich would create economic growth and everyone would prosper. For decades, Republican lawmakers railed against saddling future generations with trillions in debt. Again, Mnuchin avoided answering the question directly. If the tax cut applies to all business income reported on individual tax returns, it would be a huge benefit for many wealthy families.

"The principles outlined by the Trump administration today will serve as critical guideposts" as Congress and the administration work on tax changes, they said in a statement. Allowing people to keep more of their money, proponents say, could fuel consumer spending, which accounts for about 70% of GDP. That idea was part of initiatives floated by House Republicans as a way to offset revenue losses resulting from steep tax cuts.

The administration is painfully aware that last time such a tax amnesty was tried, USA companies spent the repatriated money mainly on stock buy-backs and shareholder dividends.

"That's the objective", Mnuchin responded. The one-page list of principles that Trump's administration released Wednesday cited the elimination of "tax breaks for special interests", signaling that some companies might have to give up subsidies they now receive.

A key element is a one-time tax on overseas profits, which Mnuchin said will "bring back trillions of dollars that are offshore to be invested here in the United States".

Assembly Republican Leader Chad Mayes said: "Californians, whether you're a Republican or a Democrat, are different from the rest of the country".

By making a loophole for large USA multinationals permanent, and adding a new loophole for those at the top, the Trump administration has proved that, just like House Republicans, they are not interested in tax "reform," but rather tax cuts for the rich. "We look forward to working together with the House and the Senate, very closely, in the weeks ahead". "It puts us on the same page".