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[Beefy]

President-elect Donald Trump's pick for U.S. Treasury secretary, Steven Mnuchin, said on Wednesday the administration would target tax reform and trade pact overhauls as top priorities as they seek to achieve 3 percent to 4 percent economic growth.

Mnuchin and Wilbur Ross, Trump's nominee for commerce secretary, outlined their agenda, including what Mnuchin called the largest tax overhaul since the Ronald Reagan administration, in an interview on CNBC. Both men confirmed they had been tapped for the jobs.

Trump planned to announce the appointments, along with that of Chicago Cubs co-owner Todd Ricketts as Ross's deputy, later on Wednesday, transition officials said.

Mnuchin and Ross reinforced the sweeping proposals Trump put forth in September to simplify the tax code and slash the corporate tax rate to 15 percent, cutting the top rate for all businesses from the present 35 percent.

"We think by cutting corporate taxes we’ll create huge economic growth and we’ll have huge personal income," Mnuchin said in the interview.

Tax experts have questioned Trump's assertion that the proposals would not add to the nation's debt and deficit. Mnuchin and Ross said lower tax rates would be offset by reductions in the number of income tax deductions.

He also said the administration would cap mortgage interest deductibility but would allow for some deductions.

Trump, throughout his presidential campaign, pledged to redraw trade deals to win back American jobs. He has threatened Mexico and China with punitive tariffs in a move that some economists have warned could spark a trade war that could potentially roll back decades of liberalization.

Mnuchin and Ross said trade reform would be a top agenda item in the new administration. Both men criticized regional trade pacts, saying they favor bilateral agreements with trade partners.

"There’s trade, there’s sensible trade and there’s dumb trade. We've been doing a lot of dumb trade," Ross said.

Trump has vowed to kill the Trans Pacific Partnership, an ambitious Asia-Pacific trade pact linking the United States and 11 countries.

Mnuchin said the Treasury and Commerce Departments have trade enforcement capabilities. With regard to China's foreign exchange policy, he said, "If we determine we need to label them as a currency manipulator that's something the Treasury would do."

Mnuchin and Ross also criticized the financial reform legislation known as Dodd-Frank, passed after the 2007-8 financial crisis, as too complicated and cuts back lending.

Ross said he believes it is likely the Fed will raise interest rates at its meeting in December.

http://www.reuters.com/article/us-u...c98a&utm_medium=trueAnthem&utm_source=twitter

 

[giga]

Tax experts have questioned Trump's assertion that the proposals would not add to the nation's debt and deficit. Mnuchin and Ross said lower tax rates would be offset by reductions in the number of income tax deductions.

I needed a good laugh.

 

[orochi91]

Corporate tax cut from 35% to 15% seems rather steep.

Like, way too fucking steep.

 

[darkwing]

wealth will trickle down at last

 

[Kuldar]

"We think by cutting corporate taxes we’ll create huge economic growth and we’ll have huge personal income," Mnuchin said in the interview.

At least they are honest about what will happen to them.

 

[Wilsongt]

Cutting taxes on businesses and expect huge growth?

Didn't we already have that happen somewhere and it failed miserably?

I just can't remember where...

*sips tea from a cup with the state of Kansas on it*

 

[Skellig Gra]

Corporate tax cut from 35% to 15% seems rather steep.

Like, way too fucking steep.

Well if they close the loopholes it'll be an increase in what they were currently paying. However that isn't likely.

 

[Totakeke]

Well if they close the loopholes it'll be an increase in what they were currently paying. However that isn't likely.

Let's not overexaggerate and just say impossible shall we.

 

[Squalor]

Will we sink the climate or our economy faster?

 

[RPGCrazied]

Trump supporters got played, they honestly think Trump will lower their taxes. Fat chance.

 

[greycolumbus]

I don't know. Maybe corporations shouldn't have to pay anything at all. We should give it a shot.

 

[Biske]

Ah the age old idea that somehow if the greedy company that sees you as a faceless slave asshole, get it's taxes cut. It will want to share those profits with you...


As an example, my Company buys plants and hires a plant Company to come water them


Apparently we can't be trusted to grow our own plants or water them


Why give us a raise or better perks when you can hire fucking plan waterers

 

[ezrarh]

I agree with simplifying the tax code. Not even outraged at the drop in 35% to 15%. We need to make it easier for small businesses to exist without legions of accountants and lawyers to game to the tax code. Mortgage interest deduction just favors the upper middle class with expensive homes right now.

However, for whatever reason I don't trust these guys to make decisions that will help the majority of Americans in the long run.

 

[Wilsongt]

Trump supporters got played, they honestly think Trump will lower their taxes. Fat chance.

A lot of poor Trump supporters barely paid federal income taxes as it is. I am sure small business owners who support Trump think he is a Godsend, though.

 

[Lilalaunebaer]

Better not take any loans soon. Recession incoming in 3...2...

 

[Patryn]

Mnuchin and Ross said lower tax rates would be offset by reductions in the number of income tax deductions.

If this was true, then what is the point of this whole exercise? If it's really just a matter of x=y, then why not just keep x?

I know, I know. The real answer is they know this is total bullshit.

 

[A Human Becoming]

I don't know. Maybe corporations shouldn't have to pay anything at all. We should give it a shot.

Getting rid of the corporate income tax is something economists across the political spectrum actually agree on. They also agree on other unpopular measures like eliminating the mortgage tax deduction.

After listening to the whole segment I've become okay with it if we went to a luxury (consumption) and deterrent tax policy. That's not going to happen under Trump though: more likely you'll see major cuts in non-military programs.

 

[Plinko]

"We think by cutting corporate taxes we’ll create huge economic growth and we’ll have huge personal income," Mnuchin said in the interview.

Who will have "huge personal income?" Because all history and mathematics show that it isn't the employees of these corporations.

 

[whitehawk]

Mnuchin and Ross reinforced the sweeping proposals Trump put forth in September to simplify the tax code and slash the corporate tax rate to 15 percent, cutting the top rate for all businesses from the present 35 percent.

"We think by cutting corporate taxes we’ll create huge economic growth and we’ll have huge personal income," Mnuchin said in the interview.

this has been tried, it doesn't work!

 

[adj_noun]

"We think by cutting corporate taxes we’ll create huge economic growth and we’ll have huge personal income," Mnuchin said in the interview.

This is the song that doesn't end

Yes it goes on and on my friend

 

[Battersea Power Station]

This dude is the son of a Goldman banker, was the President or something of the Skull and Bones society at Yale, was at Goldman himself, and is involved with Clinton and Soros money. I wonder how Trump supporters feel about him.

 

[R10Neymarfan]

I agree with simplifying the tax code. Not even outraged at the drop in 35% to 15%. We need to make it easier for small businesses to exist without legions of accountants and lawyers to game to the tax code. Mortgage interest deduction just favors the upper middle class with expensive homes right now.

However, for whatever reason I don't trust these guys to make decisions that will help the majority of Americans in the long run.

Interesting but why couldn't they separate it into two sections regulating a small business and a corporation?

 

[Oersted]

I don't know. Maybe corporations shouldn't have to pay anything at all. We should give it a shot.

Maximized trickle down

 

[LakeEarth]

This dude is the son of a Goldman banker, was the President or something of the Skull and Bones society at Yale, was at Goldman himself, and is involved with Clinton and Soros money. I wonder how Trump supporters feel about him.

"Four more years! Four more years!"

 

[Trickster]

This is the song that doesn't end

Yes it goes on and on my friend

lmao, spot on

 

[Barzul]

Good time to be rich.

 

[gutter_trash]

Trump supporters got played, they honestly think Trump will lower their taxes. Fat chance.

No they didn't, they knowingly voted for a draft dodging billionaire who never served the public

 

[Hexa]

Interesting but why couldn't they separate it into two sections regulating a small business and a corporation?

Good point. Why isn't the corporate tax rate progressive?

 

[Linkark07]

By now they should just remove corporate and companies taxes and increase individuals taxes. Those white hard working Trump supporters wanted to make America Great Again, now it is their chance with their taxes.

 

[gamechanger87]

Interesting but why couldn't they separate it into two sections regulating a small business and a corporation?

Like size restrictions? Small businesses can be an S-Corp, a C-Corp or an LLC. Same with massive businesses. In an S-Corp or an LLC, the profits are passed through to the owners who pay income tax on these profits individually. A C-corp is taxed directly.

Most small businesses will opt for an LLC or an S-Corp and they will plow personal expenses into the business and classify them as business expenses to reduce the tax burden.

 

[Giant Panda]

If this was true, then what is the point of this whole exercise? If it's really just a matter of x=y, then why not just keep x?

I know, I know. The real answer is they know this is total bullshit.

The tax exemptions or loopholes aren't applied evenly, unlike the flat corporate tax rate would be. For example, large multinationals currently pay so little tax because they have the legal resources to scour the tax code and take advantage of everything they find. Smaller businesses don't have that ability in most cases, which puts them at a disadvantage compared to the larger corps.

Then there's also the issues of the exemptions incentivizing inefficient behavior.

So there are a lot of very real reasons to go with lower rates and no/fewer exemptions. But yeah, like Trump would actually follow through lol.

 

[Sulik2]

Corporate tax rate should be 50 to 70% and its going to 15%. Public services are so screwed in this country for decades to come.

 

[Jeffrey]

i'm still not seeing how any of this will keep businesses in america? No matter the taxes or penalties, the cost of a worker in mexico or china is still immensely cheaper than anything in america.

 

[gamechanger87]

Good point. Why isn't the corporate tax rate progressive?

Its a burden of taxation issue and its complicated. One way or another the US Corporate Tax rate is way too high. It incentivizes companies to figure out ways to dramatically reduce the actual taxes paid. It's why companies like GE don't pay much in tax. There are a variety of things you can do as a business to reduce your taxable income and thus the actual taxes owed.

 

[thefro]

Really depends on how its done, but I support lowering the corporate tax rate as long as its offset by closing corporate tax loopholes.

I suspect 15% is probably a bit too low for a rate.

 

[woodland]

i'm still not seeing how any of this will keep businesses in america? No matter the taxes or penalties, the cost of a worker in mexico or china is still immensely cheaper than anything in america.

Companies acquire other organizations in efforts to relocate their HQ to take advantage of tax law all the time - examples being recent Tech/Healthcare acquisitions to take care of Irish or Canadian tax law. Furthermore, I believe this also might incentive an extraordinary revenue for the US Gov't based off 1-time bringing back of cash held overseas? Though I could be wrong, that might be another tax.

 

[PsychoSoldier]

Really depends on how its done, but I support lowering the corporate tax rate as long as its offset by closing corporate tax loopholes.

.

I feel like the chances of that are basically zero when the guys in the cabinet are exactly the sort that benefit from those exceptions.

 

[gamechanger87]

i'm still not seeing how any of this will keep businesses in america? No matter the taxes or penalties, the cost of a worker in mexico or china is still immensely cheaper than anything in america.

Part of lowering the corporate tax rate and adjusting how foreign profits are taxed for US corporations, is to dramatically reduce the incentive for US corporations to just park cash overseas where it is essentially untaxed. By lowering the rate to 15% and giving a one-time tax holiday rate of 10%, US companies should be willing to repatriate the cash. For example, Apple has $230B in cash held overseas and they don't want to repatriate it because they get hit with the full tax rate (40%).

Trump is actually proposing a deemed repatriation which means that these companies will be taxed at the new rate on foreign profits declared whether or not they actually repatriate the cash. Thus, just keeping the cash offshore doesn't protect you from the tax.

He believes that by forcing the companies to pay taxes on foreign profits, this will be a quick influx of cash that is just held outside our current tax rules.

Regarding the cost of a worker in China or Mexico, he is proposing tariffs that will raise the cost of these goods to a point that US manufacturing can actually be competitive.

 

[Averon]

So, Kansas was a trial run for the rest of the nation?

 

[Plinko]

So, Kansas was a trial run for the rest of the nation?

Pretty much, as everything we're seeing so far from this administration follows that plan almost exactly.

 

[hydragonwarrior]

Cutting taxes on businesses and expect huge growth?

Didn't we already have that happen somewhere and it failed miserably?

I just can't remember where...

*sips tea from a cup with the state of Kansas on it*

In 4 years, if every state can be like Kansas, we'll be set!

-Trump Supporter

 

[False Witness]

You know, for some reason, I can totally see the Trump administration trying to remove the Earned Income and Child Tax credits.

 

[Draft]

Of all the dumb stuff Trump will do, this is some of the least dumb.

Economists agree!

http://www.npr.org/sections/money/2016/10/26/499490275/episode-387-the-no-brainer-economic-platform

Number crunchers from both sides of the political spectrum came up with a list of no-brainer economic reforms. Even the crunchiest granola smelling hippy economists thinks the corporate income tax needs to go away.

The trade stuff is not going to work but hey.

edit: At 13:00 if you are going to listen.

edit: I was late with this!

 

[AndyD]

Who will have "huge personal income?" Because all history and mathematics show that it isn't the employees of these corporations.

Indeed. That said, reducing corporate tax rate while eliminating loopholes and deductions and complications makes sense. It's way too convoluted now and eliminates any reasonable chance at transparency and enforcement.


However, I am also waiting for the very very quiet "one time only no-tax opportunity for businesses to bring offshore stashed profits home to spur growth and investment into the US". Which is what a lot of businesses have been waiting on for a decade or more. Trillions will go un-taxed.

 

[Alcotholic]

Getting rid of the corporate income tax is something economists across the political spectrum actually agree on. They also agree on other unpopular measures like eliminating the mortgage tax deduction.

After listening to the whole segment I've become okay with it if we went to a luxury (consumption) and deterrent tax policy. That's not going to happen under Trump though: more likely you'll see major cuts in non-military programs.

Economists have said that eliminating corporate tax would encourage businesses to reinvest the extra money back into itself, but I dont actually think that would happen. CEOs make millions- thousand times more than their workers. All that extra money would go right into their pockets.

 

[Extra Sauce]

This dude is the son of a Goldman banker, was the President or something of the Skull and Bones society at Yale, was at Goldman himself, and is involved with Clinton and Soros money. I wonder how Trump supporters feel about him.

Not like Breitbart is going to report those facts to them.

 

[Zaraki_Kenpachi]

I'm more interested in what they kill of Dodd Frank

 

[LegendofJoe]

Cutting corporate tax rates and paying for it by capping things that help people like me such as the mortgage interest deduction? Like seriously, they honestly think that will increase the income of average workers? It's the same old, same old help the rich get richer by making everyone else poorer.

 

[Log4Girlz]

Economists have said that eliminating corporate tax would encourage businesses to reinvest the extra money back into itself, but I dont actually think that would happen. CEOs make millions- thousand times more than their workers. All that extra money would go right into their pockets.

Stock buybacks

 

[Triggerhappytel]

Trump supporters got played, they honestly think Trump will lower their taxes. Fat chance.

He'll probably end up raising personal taxes to make up for the massive deficit introduced by corporations paying less. This presidency is going to be four years of Trump well and truly looking out for his friends and himself.