First we have the Senate reinstating the AMT. And now this:
On Friday, Gary Cohn, the president’s senior economic adviser, suggested the White House might push for a cap on federal deductions for state income taxes, rather than an elimination.
Both the House and Senate have already passed bills that cap SALT deductions (for property taxes) at $10,000. Why put this idea out there now? This is just mind-bogglingly dumb.
And now we discover that the corporate changes will encourage firms to move plants overseas.
PS. I enjoyed reading this:
As written, the plan is “a disaster”, said the head of another powerful New York-based investment bank, who asked not to be named for fear of being attacked by Mr Trump on Twitter.
He added: “This won’t happen over the period of a quarter or a year, but in five to 10 years, when we’ll look back at the amount of intellectual capital lost by New York City and other blue [Democratic-led] states because of Trump’s tax reform, we’ll get the full extent of how damaging all this is.”
But wait, I thought it’s been “proved” that supply-side economics is wrong; marginal tax rates don’t affect behavior.