Apr 26, 2017

Trump tax plan leaves more questions than answers

Susan Walsh / AP

After Steve Mnuchin and Gary Cohn announced Trump's long-awaited tax reform plan today, Cowen and Company — a DC based consulting firm for investment banks — sent a document to Axios arguing that it left more questions than answers.

"What the Trump Administration has proposed is not permanent tax reform, but a ten-year tax cut and the creation of the most phenomenal fiscal cliff ever in 2028," read the company's statement.

Cowen pointed out some of the missing pieces from the plan, which they considered critical to understanding it:

  • Border Adjustment Tax (BAT) that would raise $1.1 trillion over 10 years.
  • Net Interest Deduction Elimination, raises $1.2 trillion over 10 years. "So without this or BAT, add $2.3T onto government credit card."
  • "President Trump's Personal Tax Returns. Democrats have said they will not even begin negotiating until his returns are made public."

Why 10 years? If the bill increases the deficit over the 10-year budget window — which it is almost certainly expected to considering the Trump admin hasn't put forth a clear way to pay for the plan — "the underlying section of the bill sunsets/expires after 10 years (just like the 2001 and 2003 Bush Tax Cuts that created the Fiscal Cliff in 2012)."

Go deeper

Updated 28 mins ago - Politics & Policy

Biden: George Floyd's last words are "a wake-up call for our nation"

Former Vice President Joe Biden meets with clergy members and community activists during a visit to Bethel AME Church in Wilmington, Del. on June 1, 2020. Photo: JIM WATSON/AFP via Getty Images

Vice President Joe Biden is calling George Floyd’s dying words “a wake-up call for our nation,” and criticized President Trump’s decision to unleash tear gas on peaceful protesters outside the White House, in a civil rights speech from Philadelphia on Tuesday.

Why it matters: Biden in the address drew a sharp contrast between himself and Trump, whose first remarks addressing nationwide unrest Monday highlighted law and order, extreme demonstrations of militarized “strength” and other blustery threats.

Updated 36 mins ago - Politics & Policy

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Global: Total confirmed cases as of 11 a.m. ET: 6,302,318 — Total deaths: 376,322 — Total recoveries — 2,716,924Map.
  2. U.S.: Total confirmed cases as of 11 a.m. ET: 1,812,125 — Total deaths: 105,192 — Total recoveries: 458,231 — Total tested: 17,340,682Map.
  3. Public health: Protests against police brutality threaten coronavirus response.
  4. Business: Coronavirus could lower GDP by $15.7 trillion — More than 1 in 6 black workers lost jobs between February and April.
  5. Climate: The alarm over climate financial risk gets louder because of coronavirus.
  6. Media: Interest in the George Floyd protests has soared past the coronavirus.

The business of tear gas

Illustration: Eniola Odetunde/Axios

U.S. forces yesterday used tear gas on peaceful protesters outside the White House gates, prior to a declared curfew, clearing a path for President Trump to visit a riot-damaged church for a photo opportunity.

The state of play: Two of the largest U.S. producers of tear gas are owned by private equity firms, but those firms have no interest in discussing their ownership.