Trump's "three powers in one" tax policy is it only a matter of scale left to be implemented?

The Republican Party's big win in the presidential election and Congress has turned what could have been just a continuation of Trump's tax cut policy into a movement to cut taxes in new and larger ways. With the Republicans set to hold a majority in both the Senate and the House, this means that Trump can enact tax legislation without concessions to the Democrats. Republicans will only be limited by how much deficit spending their party members and the global financial markets are willing to tolerate. Rohit Kumar, co-leader of PwC's national tax office and former tax policy advisor to Senate Republican leader Mitch McConnell, said, "This is a trillion-dollar question." Gordon Gray, former assistant to the Republican Senate Budget Committee and current executive director of the Pinpoint Policy Institute, stated that with Congress now more likely to extend expiring provisions of the 2017 law, such as the 20% reduction in corporate income tax and the increase in the estate tax exemption, owners of closely held corporations and high-net-worth families will benefit. Many Democrats had campaigned on taxing the wealthy and proposed paying for other tax cuts by targeting these provisions, as well as canceling tax cuts for businesses and individuals making over $400,000 annually. Grover Norquist, chairman of the influential conservative group Americans for Tax Reform, who plays a key role in tax policy debates within the Republican Party, said that the party's success in the election not only supports the 2017 tax cuts but also paves the way for further cuts in corporate tax rates and exemptions from federal income tax. During his presidential campaign, Trump vigorously pushed for lowering corporate tax rates and reducing income taxes, promising numerous other tax cuts. The first thing Republicans will need to negotiate is the scale of the tax cut plan and how much they are willing to increase the federal deficit. The federal deficit reached $1.83 trillion by the end of the fiscal year on September 30. According to the nonpartisan committee "Committee for a Responsible Federal Budget," simply extending expiring tax policies would add $4.6 trillion to the deficit over the next 10 years, while all of Trump's campaign plans could add up to $7.75 trillion. Stephen Moore, senior fellow at a traditional foundation and informal advisor to Trump, argued that tax cuts would stimulate economic growth, and Republicans could also cancel spending approved by Biden to offset the costs of the cuts. However, he added that the legislation might increase the deficit to some extent. Sage Eastman, Republican strategist and former aide to the House Ways and Means Committee, noted a conflict within the party between deficit hawks and lawmakers who believe that the revenue losses from tax cuts do not need to be offset. The House Ways and Means Committee has jurisdiction over tax legislation. Mike Crapo, incoming chairman of the Senate Finance Committee from Idaho, said that growth-promoting tax policies wouldn't need to be paid for. Kyle Pomerleau, senior fellow at the American Enterprise Institute, noted that although the 2017 tax cuts had some positive economic effects, they were much milder than the predictions of the Trump administration and some Republicans. Martha Gimbel, executive director of the Yale Budget Lab and former White House economist in the Biden administration, said, "It is important to see whether the market is starting to panic, if they are thinking about enough deficit spending, or if they will decide to do a careful analysis." Trump has pledged to impose tariffs of 10% to 20% on all imported goods, 60% on Chinese products, and use it as an offset for tax cuts. However, lawmakers will have to decide whether to include these tariffs in tax legislation to formally calculate revenue - a difficult vote for Republicans, especially those who support free trade. They may also assume that the tariffs imposed by the president will continue to generate revenue, despite the possibility of Trump reaching a trade agreement to cancel the tariffs in the future. Dave Camp, senior policy advisor at PwC and former Republican chairman of the House Ways and Means Committee, stated, "There's always a way to make things work." The Peterson Institute for International Economics estimated that these tariffs would only bring in about $225 billion in revenue annually. Kimberly Clausing, tax law professor at UCLA who previously served in the Treasury Department in the Biden administration, suggested that Republicans may overestimate the revenue from tariffs and overlook the negative economic impact. Kumar noted that Republicans have expressed the goal of passing a tax legislation within the first 100 days of Trump's second term, although negotiations over details may take longer. Scott Mulhauser, Democratic strategist and senior figure involved in policy battles, highlighted the slim majority the Republicans hold in the House, giving a small number of Republican lawmakers the ability to push for specific tax cuts, while the Democratic strategy will focus on vulnerable Republican lawmakers in swing districts to either support or oppose individual provisions. Skeptics doubt whether all the tax cuts proposed by Trump during the campaign will be implemented - the increasing number and complexity of these proposals make it difficult to develop an entire list, and some of his advisors are unsure of which proposals he is most committed to. Trump has promised to restore the full value of the state and local tax deduction (SALT), a popular deduction for high-tax states like New York, New Jersey, and California. The tax law signed by Trump said that regardless of marital status, the deduction cap can't exceed $10,000. While some adjustments to SALT are possible, such as raising the limit or doubling the deduction for married couples filing jointly, completely lifting the restriction is unlikely due to the resulting revenue loss. According to the Committee for a Responsible Federal Budget, this would lead to a loss of $1.2 trillion over 10 years.Original."Je suis heureux de vous rencontrer" "I am happy to meet you."