A 2016 study by the Tax Policy Center comparing Trump’s then-stated plan and the current tax ratesOne of the big platforms that boosted Trump to the Oval Office was his promise to let business operate unencumbered. Throughout his campaign, he promised a hands-off approach to business, including wide-scale financial deregulation as well as considerable corporate tax cuts.
In fact, Wall Street was riding high post-election on sheer optimism. Financial and industrial stocks soared, reaching record peaks, in anticipation of the big regulatory rollback that was sure to follow.
For businesses, too, hopes were high. The Trump administration promised huge tax cuts for businesses and corporations.
Corporate tax cuts still on the way?
Optimism has since waned. As Congress has struggled to keep pace with a constantly in-flux administration with an ever-shifting stance, it has proved difficult for legislators to nail down details.
Neither Congress nor the White House has yet announced any definitive plans for deregulation or tax cuts. In fact, it seems there won’t be any definitive plans for some time. According to a Reuters report, the White House says a detailed tax plan shouldn’t be expected until September. This leaves little time for Congress to pass a tax reform bill for 2017.
Meanwhile, there seems to be some debate has to the scope of the intended tax cuts. The Trump Administration is calling for extreme cuts – 15 percent from the current 35 percent – whereas most Republicans have a more moderate 20 percent in mind.
Even still, there’s further debate among Republicans has to how tax cuts will affect the U.S. deficit.
Blessing in disguise?
Maybe it’s a good thing there are no definitive tax cut plans. The White House and Capitol Hill should work closely together on an appropriate tax reform. Massive corporate tax cuts would take a drastic toll on the budget deficit.
Depending on the scope of businesses and industries that a 15 percent tax rate would cover, it could increase the deficit $2.4-$4 trillion over the course of a decade.