U.S. Outlook: Trump tax plan grabbing headlines

Scott Anderson
Posted by Scott Anderson
Chief Economist

This week top Trump officials and congressional Republican leaders released a nine-page framework on tax reform on which they agree.

Capitol building, mostly the dome, in morning sunlight.There are still too many unknowns to get a clear read on winners and losers, or how much of negative impact the tax cut package is likely to have on the federal debt.

For more on this, see highlights of my report below, followed by a link to the full U.S. Outlook, delivered on Sept. 29.

Key observations:
  • Under the current plan most wealthy households and nearly all U.S. businesses — small and large — will see substantial tax cuts.
  • Businesses will also be able to write off their investments right away instead of incrementally over several years.
  • The plan also calls for reducing the numbers of personal income tax brackets from seven to three, with three tax rates of 12%, 25%, and 35%.
  • Can we boost the U.S. economy’s growth rate enough to pay for the tax cut? Not likely.

 

Click here to read my full report. 

 

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