April 27, 2017

PUNCHING BACK TWICE AS HARD? White House unveils dramatic plan to overhaul tax code in major test for Trump.

White House officials are ambitious, but the path to overhauling the tax code is riddled with political land mines. Many budget experts say they believe the White House’s plan would reduce federal revenue by so much that it would grow the debt by trillions of dollars in the next decade, growing interest costs and slowing the economy.

And Trump’s advisers are looking to ax some tax breaks that are very popular in certain states, including the deduction Americans take for the state and local taxes they pay separately each year. Eliminating this deduction could save more than $1 trillion over 10 years but inflame lawmakers and governors in states that have high income tax rates.

Those high-tax states tend to vote for and be run by Democrats, and I seem to remember advice from the previous president about punishing enemies.

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