Wednesday, April 19, 2017

The Single Reason Tax Reform Isn't Coming Anytime Soon

The market is finally waking up to what we’ve been telling our clients since February...

That Trump’s economic proposals, particularly his tax reform plan, would not be hitting in 2017.

This is not a political statement… the reality is that the math is not there… and the swamp makes reform slow-going…

If you don’t believe us, here’s Trump’s Treasury Secretary confirming it.

Treasury Secretary Steven Mnuchin said in a published Monday with the Financial Times that enacting tax reform legislation by August is “highly aggressive to not realistic at this point."

The comments contrast with remarks Mnuchin made in March, when he said his goal would be to have a tax bill "signed" by August…

Source: The Hill.

Tax reform isn’t coming anytime soon. Neither is a healthcare reform. Nor infrastructure spending.

The reason?

The US is already saturated in debt… due to our financing a staggering amount of social entitlement spending which comprises 64% of the Federal Budget.

Even if Trump were to cut ALL non-entitlement and military spending programs by 20% across the board, he’d only free up $64 billion.

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