Trump may have something to say about taxes tomorrow, but what? As usual, the uncertainty level is high. Some White House aides say the announcement will include only principles and outlines. Some say it will describe a tax cut, others say it will focus on tax reform. Still others insist key issues remain undecided. On Sunday OMB Director Mick Mulvaney said, “You can either have a small tax cut that's permanent or a large tax cut that is short-term. I don't think we decided that.” Yesterday, the Wall Street Journal quoted unnamed sources (paywall) saying President Trump would stick to his campaign pledge to cut corporate rates to 15 percent. TPC estimates that provision would add $2.3 trillion to the debt over 10 years.
Maybe we’ll know more tonight. Treasury Secretary Steven Mnuchin and top Trump adviser Gary Cohn will meet with Hill GOP leaders today, presumably to give them advance notice about what the president will say on Wednesday. Mnuchin may elaborate tomorrow at an event sponsored by The Hill.
A postcard, but how large? For years, some tax reformers have vowed to simplify the tax code so that people can file on a postcard. At a White House briefing yesterday, Mnuchin qualified that promise a bit: "The average American should be able to do their taxes on a large postcard," he said. Not sure what he means by large, but many filers can already use the one-page Form 1040 EZ.
Colorado’s marijuana sales tax revenue helps fund college for some. Pueblo County has a new $1,000 college scholarship program for students attending Pueblo Community College or Colorado State University-Pueblo. Funding for 2017 totals $475,000, most of which comes from the state’s marijuana excise tax.
Tennessee’s gas tax bill moves ahead. The state’s House considers Governor Bill Haslam’s proposed road funding bill this week. He’d raise fuel taxes by $350 million for the state's dedicated highway fund for the first time since 1989. The gas tax would climb 6 cents per gallon to 27.4 cents over the next three years. Diesel tax would climb by 10 cents per gallon to 28.4 cents.
India’s tax reform: Hard, but paying off? The government is in the midst of changing its economy of 1 billion individuals and 9 million businesses in 29 states to a unified market with its goods and service tax. The GST may boost the movement of freight, and that has prompted Deutsche Post DHL Group to invest $268 million in India by 2020 and expand its logistics business.
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