A pair of former Goldman Sachs executives, Treasury Secretary Steven Mnuchin and White House Chief Economic Adviser Gary Cohn, stepped on stage Wednesday to introduce a tax plan that promises everything to everyone: Lower taxes for individuals, much lower taxes for corporations, and taxes so simple you can do them in your head.
At first glance, two things stand out. One, this plan seems identical to previous Trump proposals that would explode the deficit while rewarding corporations that are already sitting on enormous stacks of cash. And two, this is just an outline. There’s nothing to this “plan” except the 20,000 foot view of a scheme utterly lacking in detail. There’s no numbers on its simplified tax brackets. No hint about how it affects any number of areas. Certainly no projection of what it would cost.
But in a plan that’s all talking points, there’s one point no one wants to talk about: How would the plan affect Donald Trump?
Mnuchin was asked at least three times whether this tax plan would benefit Trump and his businesses and wouldn't answer directly.
It’s fair to say that it’s impossible to determine just how much Trump will benefit, when he won’t reveal where he stands today.
Reporter: Will the president release his tax returns so that …
Mnuchin: The president has no intention … the president has released plenty of information. and, uh, I think has given more financial disclosure than anybody else. I think the American population has plenty of, uh, information.
There it is. Donald Trump shoved his bankers on stage to check the “talked about tax plan in the first 100 days” box, but still doesn’t intend to tell the public what it means to him. But then, since the entire “plan” released on Wednesday is a single page, it’s hard to tell what it would mean for anyone … but there are a few items worth discussion.
According to Cohn, personal income tax would drop all deductions except mortgage interest and charitable deductions. So those who end up being battered by health care costs after Trump removes protections for pre-existing conditions and health emergencies, shouldn’t expect to recoup any of their costs on tax day.
What’s in the plan?
Completely and immediately eliminating the inheritance tax — a big concern to Ivanka, Donald Jr., and Uday.
Cutting the corporate tax rate to 15 percent. Actually, to below 15 percent, depending on how corporations play the “territorial” system that exempts them from funds earned overseas—a big concern to Robert Mercer.
One of the details that didn’t make it into that single page? Capital gains. But with the whole corporate rate starting at less than than that of a middle class family, it’s safe to say that rate would be “not much.”
Not only is Trump’s proposal incomplete, it’s at odds with other plans put forward by the Republicans and so unrealistic it may halt the whole idea.
President Donald Trump on Wednesday will release a plan to radically overhaul the American tax code that many Republicans say is unrealistic and could end up hurting the chances of getting anything done on the issue, long one of the party’s top priorities.
Driven by a president eager to show momentum heading into the close of his first 100 days in office, the hastily written plan could wind up alienating critical Hill Republicans while offering little or nothing to entice Democrats. It could also be widely dismissed by outside observers as an over-hyped rehash of promises the president already made during the campaign.
Hopefully we will get tax reform — because corporations and the wealthy really need to pay a whole lot more.
Gary Cohn was president and CEO of Goldman Sachs for a decade before he joined Trump’s regime. Steven Mnuchin worked at Goldman Sachs for 17 years before leaving to purchase the failing IndyMac mortgage bank where he was best known for mass foreclosures.