White House set to unveil tax reform blueprint

The White House will unveil its much-anticipated blueprint for President Donald Trump’s tax reform plan Wednesday.

Advertisement

Administration officials are calling this a "first draft" -- an outline of priorities and principles. It won't be draft legislation. In the final hours leading up to its release, some key parts were still a work in progress.

But with excitement on Wall Street, and the president looking to build momentum ahead of his 100th day, aides are planning coordinated public relations blitz.

What we know (and don't) about Trump's tax reform plan

Trump signs executive actions to review tax regulations, roll back Dodd-Frank

There will be a press briefing Wednesday on the proposal and key members of Trump's team, including Treasury Secretary Mnuchin, will be out talking about it. However, there won't be a formal event with the president himself; Trump is expected to do a few media interviews and address it during his rally in Pennsylvania on Saturday.

So what's in it?

The plan mirrors his tax proposal from the campaign. Among the things Trump will call for:

- Corporate tax rate cut from 35 percent to 15 percent

- Tax break for child-care expenses -- a stance advocated by first daughter and assistant to the president Ivanka Trump

- Cutting individual tax rates, though aides are still tweaking the brackets

- Closing loopholes, although it is unclear if the blueprint will specify which loopholes and how.

One big item the plan likely will not include is a Border Adjustment Tax, which has been the centerpiece of the House Republican and Speaker Paul Ryan-backed tax plan and is the critical "pay-for" to help offset rate cuts.

Administration officials say the "hope" is for Trump tax reform to be revenue neutral and deficit neutral, but there does not appear to be any internal insistence that it is. Many Republicans on Capitol Hill and external conservative groups are worried the corporate tax cut alone would blow a hole in the deficit.

By one independent analysis, Trump's most recent tax plan from the campaign would cost about $4.4 to almost $6 trillion over 10 years.

Asked about those concerns on Monday, Mnuchin responded, "the tax plan will pay for itself with economic growth."

When will this have any chance of getting a debate on the Hill?

Mnuchin told the Financial Times earlier this month that getting tax reform done by August recess is "highly aggressive to not realistic."

But that was before Trump teased this announcement and injecting a sense of urgency on his team.