FINANCE

Trump's tax-cut plan faces major challenges in Congress

The 'Special Report' All-Star panel weighs in

 

President Trump called for deep reductions in business tax rates and major changes to the individual tax system in a bid to invigorate his agenda as he nears the 100-day mark.

With Wednesday’s proposals—which include a 15 percent tax rate for all businesses, lower individual rates, a bigger standard deduction to benefit middle-income households and the repeal of the estate and alternative minimum taxes—Trump hopes to speed up economic growth and make his mark as a historic tax cutter.

Still, the sweeping tax plan departed in important ways from congressional Republican proposals and alienated Democrats, giving the president a narrow path to victory through Congress.

“Clearly, we have a unique opportunity to do something major here,” said Gary Cohn, the director of Trump’s National Economic Council at the White House on Wednesday. “It’s our intention to create a huge tax cut, and equally as important, a huge simplification of the tax system in America.”

The new president appears determined to take a more proactive role in shaping the structure of the planned tax overhaul than he did to repeal major parts of the Affordable Care Act, which has struggled to get through the Republican-controlled House.

A week ago, with the 100-day mark looming and no legislative victories, Mr. Trump ordered advisers to have a tax plan ready soon. The result was an outline that is heavy on ambition, light on technical detail and likely to drive up budget deficits.

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