The stock market has been riding high for weeks on anticipation of President Donald Trump’s tax reform plans. On Thursday, traders finally received some insight into what to expect and when to expect it as Treasury Secretary Steven Mnuchin laid out an aggressive timeline for the White House to reveal its long-awaited plan. What can we expect from the plan?
Is Steven Mnuchin’s August Tax Plan Date Realistic?
President Trump promised an announcement of a “phenomenal” tax plan by early March to cut business taxes. And while the markets appreciated his sentiment – as evidenced by record high after record high after record high – details have been few and far between. Now, things don’t look any clearer.
Mnuchin’s announcement acknowledged that the timeline was extremely aggressive, meaning that there’s no guarantee a concrete plan is ready by then. Mnuchin also said there is still quite a bit of work to get done on the plan, but said the plan is his “Number 1 priority.”
So what can we expect from the plan?
According to the administration, the plan is going to be focused on middle-class income tax cuts along with reworking the current corporate tax plan for “simplification and making the business tax competitive with the rest of the world.” Mnuchin said the president is still exploring the border tax plan, but that the tax reform would be negotiated with the House and Senate.
He also did not rule out potential tax cuts for the wealthy. Realistically, Trump will give some big tax cuts to the top income brackets, but Mnuchin said the administration would aim to offset any high-end tax cuts with reduced deductions and tax breaks.
Get to know more about Mnuchin’s tax plan by watching this report from NewsBeat Social:
Mnuchin believes the tax reform plan would boost economic growth for the U.S. above 3% by the end of 2018, with effects of the plan not taking hold until the beginning of 2018. But outside of some broad strokes, there’s not much here for investors to go on. We’ll need more details before fully buying into Trump’s tax reform. For now, it looks as though Trump is sticking to his guns and looking to cut corporate taxes as the centerpiece of his plan. If so, businesses should start seeing record profits, allowing traders to also reap the rewards.
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