So, usually I put up a lecture for Saturday but the coming week is going to YUGE.
First, the elections in France are Sunday and Marie Le Pen is rising at the right time. Odd how this has a strange resemblance to certain goings on here in November…
Second, it is earnings week; combined with the election in France, there will be some really fun market gyrations next week.
Third, and I usually don’t like using other people’s content like this, but this is a MUST READ for the upcoming budget battle. Read it, print it, and put it on your fridge and use it like the bracket for March Madness. There are Trillions of dollars at stake.
This is going to be fun:
President Donald Trump’s tax plan next week likely won’t include a border-adjusted tax that House Speaker Paul Ryan has proposed, a senior administration official said.
The White House is still debating the idea, according to the official. Trump will release a tax plan for individuals and businesses next week that may not include every component that will go into final legislation, according to a different senior White House official.
The plan — which Trump said will be released Wednesday — will contain the administration’s priorities, said one of the officials. Both asked not to be identified because discussions of the plan are private.
Ryan has proposed replacing the 35 percent corporate income tax with the 20 percent border-adjusted tax on U.S. companies’ domestic sales and imports. Exports would be exempt under the plan, which is opposed by retailers, carmakers and oil refiners that rely on imported goods. (I am not loving this idea at all as it is too broad and punished countries who trade honestly with us and there is too much room for influence buying and such swampish things to go on)
White House Budget Director Mick Mulvaney, in an interview with Bloomberg Television, provided few details of Trump’s plan, saying it’s aimed at providing 3 percent annual growth. “We’re trying to backfill from there,” he said — by incorporating tax policy that would provide for that ambitious growth target. A Bloomberg survey of 73 economists in April showed the median forecast for U.S. economic growth in 2017 is 2.2 percent.
Mulvaney also raised the possibility that the plan might not be revenue-neutral — meaning that it might provide for only temporary tax cuts that would have to expire after 10 years.
“Deficits are not driving the discussion,” he said.
The Associated Press reported Friday that Trump said the plan will result in “massive” tax cuts for both individuals and businesses. The cuts will be “bigger I believe than any tax cut ever,” he said, according to the AP report.
Later, while signing an executive order related to a broad review of tax regulations from 2016 and 2017, Trump said he wants Treasury Secretary Steven Mnuchin “to begin the process of tax simplification.”
3% growth. That number is very, very important for long term wealth building and stability. Without getting into the math and other such boring economic functions, 3% is the theoretic mean of positive growth that both allows for a natural level of unemployment UNDER 5.5% and inflation to be around 2%. One can go at a 3.5% or even 3.7% GDP growth and still be OK, but that is pushing it. 3%ish yearly growth is boring, predictable and good for business…and that is great for building real wealth in America.