Sep 28, 2017

Cohn: "We can pay for the entire tax cut through growth"

Gary Cohn says the administration thinks they can pay for the $5.8 trillion tax cuts through growth. Photo: Alex Brandon / AP

President Trump's economic advisor Gary Cohn broke down some of the most controversial details of the GOP's new tax plan on CNBC Thursday morning, starting with how much the $5.8 trillion tax cuts will cost Americans:

"We don't think the tax plan will cost $2.2 trillion," as some analysts have estimated, said Cohn. "When people come out with these numbers they have a very static view of the tax plan, and don't incorporate the growth...We think we can pay for the entire tax cut through growth over the cycle... and can get the U.S. to substantially more than 3% growth with tax reform and deregulation."
  • On the corporate tax rate being 20%, not 15% as the administration had previously pushed for: "We would've loved to have gone lower... but this does become a reality of balancing the budget... but we are at 20, and 20 is a bright line test for us. We are not going over 20, 20 is the top of where we are willing to go. We told them that if we start at 20 we are ending at 20 and there is no room to negotiate that."
  • Income taxes: "This is going to be in a very high income earner bracket, it is going to effect very few," said Cohn. Added that the the plan should help low income earners most.
  • Will this pass in Washington? "We've given the tax writers both in the Senate an the House an enormous amount of latitude to bring their members on... we will go through the right process to make sure this passes."
  • Carried interest rates: "The president remains committed" to that.

Go deeper

Updates: George Floyd protests continue for 8th day

Police officers wearing riot gear push back demonstrators outside of the White House on Monday. Photo: Jose Luis Magana/AFP via Getty Images

Protests over the death of George Floyd and other police-related killings of black people continued Tuesday across the U.S. for the eighth consecutive day, prompting a federal response from the National Guard, Immigration and Customs Enforcement and Customs and Border Protection.

The latest: The National Park Service said in a statement Tuesday that while it "is committed to the peaceful expression of First Amendment rights," it "cannot tolerate violence to citizens or officers or damage to our nation’s resources that we are entrusted to protect."

American carnage

Protesters race up a hill to avoid tear gas in Philadelphia, June 1. Photo: Mark Makela/Getty Images

The list of victims has swiftly grown since George Floyd died in police custody just eight days ago.

The big picture: Protests against police brutality have turned into a showcase of police brutality, with tear gas and rubber bullets deployed against crowds. The police have the arsenals at their disposal, but we're also seeing law enforcement officers becoming targets.

McConnell blocks resolution condemning Trump's actions against peaceful protesters

Senate Majority Leader Mitch McConnell (R-Ky.) blocked a resolution introduced by Minority Leader Chuck Schumer (D-N.Y.) on Tuesday that would have condemned the use of tear gas and rubber bullets against peaceful protesters outside the White House on Monday in order to allow President Trump to walk to St. John's Church.

What they're saying: "Justice for black Americans in the face of unjust violence, and peace for our country in the face of looting, riots, and domestic terror. Those are the two issues Americans want addressed," McConnell said on the Senate floor.