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Trump denounces 'dangerous anti-Semitism' in Holocaust Remembrance Day remarks

Fox News (Politics) - Wed, 04/26/2017 - 08:15
In his strongest remarks to date repudiating anti-Semitism and denouncing Holocaust deniers, President Trump on Tuesday marked Holocaust Remembrance Day by pledging – with survivors of the Nazi-led genocide looking on – that the United States would “always stand with the Jewish people.”

Mnuchin vows 'biggest tax cut' in US history, confirms plan to slash business rate

Fox News (Politics) - Wed, 04/26/2017 - 08:05
Treasury Secretary Steve Mnuchin confirmed Wednesday that the Trump administration aims to lower business tax rates to 15 percent, saying a forthcoming proposal will constitute the “biggest tax cut” for Americans in history.

Mnuchin vows 'biggest tax cut' in US history, confirms plan to slash corporate rate

Fox News (Politics) - Wed, 04/26/2017 - 08:05
Treasury Secretary Steve Mnuchin confirmed Wednesday that the Trump administration aims to lower the corporate tax rate to 15 percent, saying a forthcoming proposal will constitute the “biggest tax cut” for Americans in history.

Not Too Shabby: Trump Tax Plan Nails Corporate Rate, Errs on Income

Cato Recent Op Eds - Wed, 04/26/2017 - 08:02

Chris Edwards

Donald Trump is nothing if not bold, and on tax reform that trait is laudable because the tax code is such a damaging mess. The administration released proposals Wednesday to guide the Republican tax reform push.

The proposals are mainly “supply side” in nature, meaning cuts designed to increase economic growth and raise family incomes. The plan, however, includes a few misguided parts.

The main thrust of Trump’s plan is business tax reform. He would cut the corporate tax rate from 35 percent to 15 percent, which would have a huge and positive effect on the U.S. economy. It would encourage more capital investment and hiring, and it would reduce the incentive for corporations to avoid and evade taxes. As such, the rate cut would cause the income tax base to expand over time, thus offsetting revenue losses to the government.

Republicans have an opportunity this year to pass reforms that would generate large gains in income and opportunity for every American family. They should seize it.

Another key feature of the Trump plan is switching from a worldwide to a territorial system for corporations, meaning that foreign subsidiaries would not be taxed on their business income earned abroad. That reform would encourage multinationals to move their headquarters to the United States, which would be a plus for the adding of high-paid U.S. jobs.

Trump does not include the misguided “border adjustment” provision, or border tax, that the House Republicans included in their plan. Speaker Paul Ryan (R-Wis.) and Ways and Means chair Kevin Brady (R-Texas) should take the cue and drop their support of it so that tax reform can move ahead.

One problematic part of the Trump plan is cutting the tax rate on “pass-through” businesses to 15 percent. Pass-throughs are the large group of businesses — such as proprietorships and LLCs — that are not subject to the corporate tax.

Policymakers should equalize the overall rates on income earned by all types of businesses, but they should remember that corporate income is double-taxed — once at the corporate level and again when individuals receive corporate dividends. To equalize the corporate and pass-through rates, the latter should be chopped to about 28 percent, not 15 percent.

The administration has proposed substantial reforms to individual income taxes. The plan would reduce the number of tax brackets from the current seven to just three — rates of 10, 25 and 35 percent. That would simplify the tax code and reduce distortions. The plan would also repeal the special 3.8-percent investment tax that was imposed under Obamacare.

The Trump plan would eliminate some itemized deductions, such as the state-local tax deduction, which would simplify tax filing and create greater equity between taxpayers. It would also end the alternative minimum tax and the estate tax, both of which are reforms that Republicans have promised for years.

Trump’s proposals lack detail so far, but people are concerned about the impact on deficits if revenues are cut too much. For the corporate portion of the Trump plan, policymakers should put their deficit concerns aside. As the corporate tax rate fell, the tax base would expand as investment increased and avoidance dropped.

We have real-world experience with recent corporate tax cuts in Canada and Britain. The former slashed its federal corporate rate from 29 percent to 15 percent, while the latter slashed it from 30 percent to 20 percent. In both countries, corporate tax revenues as a share of gross domestic product are roughly unchanged. The governments appear to have lost little if any revenue.

However, the dynamic effects of individual tax cuts are not as strong as with corporate cuts, so policymakers should be concerned about the deficit effects. Optimally, Trump and Congress should offset the estimated budget impact of reduced individual tax rates with both spending cuts and eliminations of tax deductions and credits.

All in all, the Trump proposals push tax reform in a good direction. Trump, his advisors, and House leaders seem to understand the urgency of passing major tax reforms. But we need Republican senators to step up to the plate and think boldly as well.

Republicans have an opportunity this year to pass reforms that would generate large gains in income and opportunity for every American family. They should seize it.

Chris Edwards is editor of DownsizingGovernment.org at the Cato Institute.

Shutdown Showdown: What we know and what we don't know

Fox News (Politics) - Wed, 04/26/2017 - 07:28
Here’s what we know, as Congress scrambles to pass a critical spending measure. No one wants the government to shut down.

Trump slams sanctuary city ruling, says opponents are 'judge shopping!'

Fox News (Politics) - Wed, 04/26/2017 - 06:28
President Trump on Wednesday accused political opponents of “judge shopping” in their bid to block some of his signature executive orders and vowed to take his case to the Supreme Court – after a federal judge blocked his attempt to cut off sanctuary city funding.

Deficit be damned: As Trump pushes tax cuts, a majority wants more government

Fox News (Politics) - Wed, 04/26/2017 - 04:00
President Trump plans to unveil sweeping tax cuts today, a move that has the potential to blow a huge hole in the deficit.

Lawmakers suggest former Trump aide Flynn broke US law

Fox News (Politics) - Tue, 04/25/2017 - 23:37
President Donald Trump's former national security adviser, Michael Flynn, appeared to violate federal law when he failed to seek permission or inform the U.S. government about accepting tens of thousands of dollars from Russian organizations after a trip there in 2015, leaders of a House oversight committee said Tuesday.

Trump tax plan reportedly would cut small business rate to 15 percent

Fox News (Politics) - Tue, 04/25/2017 - 23:01
President Trump's tax reform plan would cut the top rate for small business owners to 15 percent from 39.6 percent, an official with knowledge of the plan told the Associated Press Tuesday.

Conway on 'Hannity': Trump has 'great record of accomplishments' in first 100 days

Fox News (Politics) - Tue, 04/25/2017 - 23:01
Counselor to the President Kellyanne Conway told Fox News' "Hannity" Tuesday that President Trump had put together "a great record of accomplishments' in the first 100 days of his administration and vowed more changes would be coming at a "breakneck pace."

Senate confirms Rod Rosenstein as deputy AG; will lead Russia probe

Fox News (Politics) - Tue, 04/25/2017 - 16:52
The Senate has confirmed Rod Rosenstein as deputy attorney general, putting the longtime federal prosecutor in place to oversee a federal investigation into Russian influence in the U.S. elections.

Top White House aides, GOP leaders meet on Hill over Trump’s tax plan

Fox News (Politics) - Tue, 04/25/2017 - 16:42
The White House is staying mum ahead of President Trump’s announcement of his much-anticipated tax plan Wednesday, but top congressional Republicans sounded open Tuesday to big cuts, even if they add trillions to the deficit.

No Parking: Reagan National Airport perk for lawmakers ending June 30

Fox News (Politics) - Tue, 04/25/2017 - 16:15
One of the most popular perks for Washington D.C.'s power players is coming to an end, Fox News has learned.

Trump orders Agriculture Dept. to end unnecessary regulations, help farmers

Fox News (Politics) - Tue, 04/25/2017 - 15:47
President Trump signed an executive order Tuesday telling the Agriculture Department to identify and eliminate potentially unnecessary regulations that “hurt farmers and rural communities.”

California judge blocks Trump order on sanctuary city money

Fox News (Politics) - Tue, 04/25/2017 - 15:17
A California judge on Tuesday blocked President Trump’s executive order that sought to withhold federal funds from so-called “sanctuary cities.”

Mayors grapple with 'sanctuary' label after Sessions meeting

Fox News (Politics) - Tue, 04/25/2017 - 14:51
The mayors of several cities say they are still grappling with what it means to be defined as a so-called sanctuary community.

Religious groups want Trump's DOJ to end case on ObamaCare contraceptive mandate

Fox News (Politics) - Tue, 04/25/2017 - 14:47
Several religious groups that challenged ObamaCare's birth control mandate want Justice Department lawyers to end the legal battle, arguing the arrival of the Trump administration makes their case impossible to argue.

Trump appoints Randolph Alles as new Secret Service director

Fox News (Politics) - Tue, 04/25/2017 - 14:36
President Trump announced Tuesday the acting deputy commissioner of Customs and Border Protection, Randolph Alles, would be the new director of the U.S. Secret Service.

DC plans 'full-scale' terror attack drill, amid NK tensions

Fox News (Politics) - Tue, 04/25/2017 - 14:13
Local governments in the Washington, D.C., region are planning a “full-scale” terror attack drill for Wednesday – an exercise that comes amid mounting tensions with North Korea and other threats.

Pennsylvania lawmakers to vote on future of 'ghost teachers'

Fox News (Politics) - Tue, 04/25/2017 - 13:29
Republican lawmakers in Pennsylvania are set to vote on a bill that would eliminate the ability of teachers to earn two taxpayer-funded paychecks, one from their union and another from their employer.

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