One of the top priorities of President Donald Trump and Republicans in Congress is to ease the tax burden on American companies. Republicans will likely use a combination of tax cuts and tax reform to lower corporate taxes to 25 percent, Height Securities analyst Peter Cohn said.
In fact, Republicans may not even need to resort to politically challenging, revenue-raising proposals such as border adjustment taxes to do so.
“While dynamic growth effects and favorable baseline changes will ‘pay for’ much of the plan, actual revenue raisers will still be necessary, likely pulled from off-the-shelf proposals such as former House Ways & Means Chairman Dave Camp’s 2014 plan,” Cohn said.
“We think a lower pass-through business income rate of 30 percent is also achievable as well as modest personal income tax changes that would simplify the brackets, repeal the AMT, cut the top rate to 37–38 percent and expand child care benefits without major changes to the ‘big three’ itemized deductions (state/local taxes, mortgage interest, charitable donations).”
Paying For The Plan
The final tax reform plan will cost an estimated $3.25 trillion to $3.75 trillion, according to Cohn. Height believes Republicans will be able to offset up to $1.5 trillion of the cost via the repatriation tax holiday, the Sec.99 deduction phase out, Subpart F reform and a number of other measures. In addition, $500 billion of the cost will be recouped via economic growth, leaving up to $1 trillion of the cost to be added to the national deficit, Cohn said.
The first step in the process will be for Congress to pass a fiscal 2018 budget this summer.
Investors are…
Click here to continue reading
Want to learn more about how to profit off the stock market? Or maybe you just want to be able to look sophisticated in front of your coworkers when they ask you what you are reading on your Kindle, and you’d prefer to tell them “Oh, I’m just reading a book about stock market analysis,” rather than the usual “Oh, I’m just looking at pics of my ex-girlfriend on Facebook.” For these reasons and more, check out my book, Beating Wall Street with Common Sense. I don’t have a degree in finance; I have a degree in neuroscience. You don’t have to predict what stocks will do if you can predict what traders will do and be one step ahead of them. I made a 400% return in the stock market over five years using only basic principles of psychology and common sense. Beating Wall Street with Common Sense is now available on Amazon, and tradingcommonsense.com is always available on your local internet!
