- “GOP” tax reform is being driven by Trump democrats Cohn and Mnuchin
- Tax reform is much farther along than the “back of the napkin” approach the MSM espoused in April
- “GOP” tax reform is highly likely to box in the Democrat Party…because it’s being driven by democrats
- The definition of “rich” is highly likely to move upward in a material fashion
Points 1-3 are obvious. Point 4 is where it gets interesting, because by simultaneously shrinking the number of brackets and raising the top bracket, net-net a tax reform bill can box in the Democrats from a “soak the rich” standpoint AND fund a large-scale middle class tax cut that leaves the “rich” taking only a minor all-in hit (i.e. an individual earning $1.5 million breaks even on a 10% cut on the first $500k and a 5% hike on the next $1 million).
According to the Axios report, Bannon supports a “4 handle” for the top tax bracket of $418,400. While I think this bracket should move up, IMO his proposal highlights the dynamic outlined above.
“Big league” tax reform is coming.