Email of the day
On the difficulty of enacting Trump’s proposed tax cuts:
David,
I think you are underestimating the challenges of enacting a tax cut following the failure of the attempted overhaul of Obamacare. The budget savings in that bill were critical for paying for the tax cut. Now the maths only works if a boarder tax is included, and that, I am told, is a non starter in the senate. I have no doubt that Trump will turn his attention to corporate tax cuts, but the politics of that will likely be just as challenging as the ACA.
Thanks for your thoughts. You would know more about this than I do. I have not seen figures stating the potential savings from the attempted overhaul of Obamacare, or comments that Trump was relying on that for financing some of his proposed tax cuts.
However, I would expect some Laffer Curve benefits from Trump's proposed tax cuts, which I assume would have sufficient cross-border support to pass.
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