Stories

Tax reform falters despite Trump's claims

Susan Walsh

Wall Street Journal lead story, "GOP Bid To Rewrite Tax Code Falters," by Richard Rubin:

"The clear winner, so far, is the status quo. ... The only big revenue-raising provision with anything close to Republican consensus is repealing the deduction for state and local taxes, and that idea faces objections from blue-state lawmakers in the party."

"[A] fruitless revenue quest may lead the GOP to second-tier options. ... One possibility is a temporary tax cut that would expire to comply with rules preventing long-run deficits."

"Another path is settling for a 25% corporate rate instead of the 20% backed by House Republicans or the 15% proposed by Mr. Trump."

Why it matters: "Republicans started 2017 with high tax-policy ambitions, seeing an opportunity to use unified control of government to achieve a long-running party goal. ... Now, the tax bill isn't written and must wait for the health bill and budget."

Trump tweeted Sunday: "The massive TAX CUTS/REFORM that I have submitted is moving along in the process very well, actually ahead of schedule. Big benefits to all!"