Feb 10, 2017

Trump tax plan is coming into focus

Dan Primack, author of Pro Rata

Yesterday, White House Press Secretary Sean Spicer said that President Trump will soon roll out a 1986-style tax reform package that addresses both individual and corporate rates. Today we're learning a bit more, per Bloomberg.

Here are the highlights:

  • Former Goldman Sachs president Gary Cohn, now Trump's chief economic advisor, is the man in charge.
  • There is a focus on cutting individual rates for low earners. Trump also promised to slash top-earner rates during his campaign, although Treasury Secretary nominee Steve Mnuchin (also a Goldman Sachs alum) has elsewhere suggested those cuts would be offset by closing loopholes favored by the wealthy.
  • A lower tax on repatriated corporate profits could be used to help pay for Trump's massive domestic infrastructure plans.
  • Congressional Republican leaders have already been briefed on the "blueprint," which is separate from Trump's budget plan. Or, put another way, Cohn is trying to mix elements of his plan with Paul Ryan's plan, in order to achieve GOP consensus.

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Updated 6 mins ago - Politics & Policy

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Global: Total confirmed cases as of 8 a.m. ET: 6,294,222 — Total deaths: 376,077 — Total recoveries — 2,711,241Map.
  2. U.S.: Total confirmed cases as of 8 a.m. ET: 1,811,277 — Total deaths: 105,147 — Total recoveries: 458,231 — Total tested: 17,340,682Map.
  3. Public health: Nearly 26,000 coronavirus deaths in nursing homes have been reported to federal health officials —Coronavirus looms over George Floyd protests across the country.
  4. Federal government: Trump lashes out at governors, calls for National Guard to "dominate" streets.
  5. World: Former FDA commissioner says "this is not the time" to cut ties with WHO.
  6. 🎧 Podcast: The virus didn't go away.

More than 1 in 6 black workers lost jobs between February and April

Adapted from EPI analysis of Bureau of Labor Statistics data; Chart: Andrew Witherspoon/Axios

As is often the case, the staggering job losses in the coronavirus-driven recession have been worse for black workers.

By the numbers: According to a report from the Economic Policy Institute, titled "Racism and economic inequality have predisposed black workers to be most hurt by coronavirus pandemic," more than 1 in 6 black workers lost their jobs between February and April.

Coronavirus could lower GDP by $15.7 trillion

Reproduced from Congressional Budget Office; Chart: Axios Visuals

The CBO released projections on Monday for U.S. nominal GDP to be lower by $15.7 trillion over the next decade than its estimate in January as a result of the coronavirus pandemic.

What they're saying: It predicts that when adjusted for inflation GDP will be $7.9 trillion lower over the next decade and down by $790 billion in the second quarter of this year — a 37.7% quarterly contraction.