THE thing about Donald Trump’s tax plans, writes Alan Cole, formerly of the Tax Foundation, a think-tank, is that they get “progressively less detailed” over time. Almost two years ago Mr Trump released a fanciful but relatively detailed plan for lower tax rates (see blog). After he won the Republican nomination, this went through several more iterations, but confusion over some of the details crept in. Once in office, Mr Trump’s administration produced a list of “principles” that would underpin tax reform, such as a promise to reduce the number of income tax bands. Today Steve Mnuchin, Mr Trump’s treasury secretary, Gary Cohn, his economics adviser, and Republican leaders from both houses of Congress released a still shorter set of principles on which they all profess to agree. Despite the apparent regression, they have promised to start the ball rolling on reform in the autumn.
The statement is most notable for what it rules out….Continue reading