Trump proposes sweeping tax reform: The White House is proposing comprehensive reforms to the tax code that would wipe out most deductions and simplify the system for individuals into three tax brackets.
The plan unveiled Wednesday would cut the top personal income tax rate from 39.6 percent to 35 percent and double the standard deduction for taxpayers to $24,000.
The plan would also lower the tax rate for corporations and most small businesses to 15 percent, more than halving the current 35 percent corporate rate.
“It’s a great plan,” President Trump said during an executive order signing at the White House. “It’s going to put people back to work.” The Hill’s Jordan Fabian breaks it down here: http://bit.ly/2qfOLFh.
Reactions to Trump’s tax proposal:
- Speaker Paul Ryan, Senate Majority Leader Mitch McConnell, House Ways and Means Committee Chairman Kevin Brady and Senate Finance Committee Chairman Orrin Hatch: “Critical guideposts for Congress and the administration.” http://bit.ly/2qg18kM.
- House Minority Leader Nancy Pelosi: “Short on details and long on giveaways to big corporations and billionaires.” http://bit.ly/2qg0hR6.
- Treasury Secretary Steven Mnuchin: The “biggest” tax cut in history. http://bit.ly/2qg4cNy.
Trump administration mulls withdrawing from NAFTA: The Trump administration is weighing an executive order on withdrawing from the North American Free Trade Agreement (NAFTA), according to a source familiar with the plans.
The measure is in draft form and has been submitted to the White House staff secretary for the final stages of review, the source said. The order could be unveiled later this week or early next week, and changes could be made during the review process.
If the administration follows through with the order, it could signal its intent to pull out of the major trade pact with Canada and Mexico. The Hill’s Jordan Fabian and Jonathan Easley explain: http://bit.ly/2qfIKZ1.
Happy Wednesday and welcome to Overnight Finance, where we’re tracking the sprints to fund the government, repeal ObamaCare and protect its insurer subsidies. I’m Sylvan Lane, and here’s your nightly guide to everything affecting your bills, bank account and bottom line.
See something I missed? Let me know at slane@digital-staging.thehill.com or tweet me @SylvanLane. And if you like your newsletter, you can subscribe to it here: http://bit.ly/1NxxW2N.
On tap tomorrow:
- House Small Business Committee: Hearing entitled “Small Business: The Key to Economic Growth,” 10 a.m. http://bit.ly/2oy3wlo.
- House Financial Services Subcommittee on Terrorism and Illicit Finance: Hearing entitled “Safeguarding the Financial System from Terrorist Financing,” 2 p.m. http://bit.ly/2oy5G4E.
This morning: ObamaCare payments emerge as pivotal issue in shutdown talks: White House budget chief Mick Mulvaney threatened to cut off crucial ObamaCare payments as soon as next month on a call with House Minority Leader Nancy Pelosi (D-Calif.) Tuesday night, according to an aide familiar with the discussion.
A White House official disputed that Mulvaney threatened to cut off the payments, but said that the administration has not made up its mind on whether to continue them.
Mulvaney also made clear that the payments would not be included in this week’s funding bill, the official said: http://bit.ly/2qfQoTk.
This afternoon: WH to Dems: We’ll continue paying ObamaCare subsidies: Trump administration officials have told Democrats they will continue paying controversial ObamaCare insurer subsidies, easing fears that a fight over the issue could lead to a government shutdown.
The move marks something of a shift for President Trump, who had threatened earlier this month to withhold the subsidies, known as cost-sharing reductions (CSRs), as a way to force Democrats to negotiate on healthcare reform.
Democrats insisted that a provision guaranteeing the payments be included in a bill to keep the government open, but Republican leaders in the White House and on Capitol Hill had rejected the demand: http://bit.ly/2qfZ6Rn.
Mnuchin vows debt limit won’t become crisis: Treasury Secretary Steven Mnuchin said Wednesday he won’t let the debt ceiling become a political crisis.
Mnuchin said he’s already had talks with members of both parties on Capitol Hill and that both Democrats and Republicans understand the importance of raising the debt ceiling.
“There’s no question about that. People agree … we’re not going to let this become an issue.”
He added: “By the way, we’re not going to do one of these wait to the last minutes either. So we’ll get the debt limit done in plenty of time.” http://bit.ly/2qfWEKF.
Battle over Wall Street rules: Lawmakers are digging in for a high-stakes battle over the future of financial regulation.
The House Financial Services Committee held a hearing Wednesday on the Financial Creating Hope and Opportunity for Investors, Consumers and Entrepreneurs (CHOICE) Act, Chairman Jeb Hensarling’s (R-Texas) sweeping rewrite of the Dodd-Frank financial reform law. Republicans have long opposed the law, passed after the last recession, and finally have the power to repeal and change parts of it.
President Trump promised to “dismantle” Dodd-Frank on the campaign trail, but a full repeal of the law appears increasingly unlikely. Bank and financial firm executives want parts of the law scaled back but aren’t asking lawmakers to abolish it.
Republicans are eyeing changes to how the government monitors major banks for financial risk and have also pushed for measures that subject the Consumer Financial Protection Bureau (CFPB) to greater congressional oversight.
Here are five things to watch as the fight over Dodd-Frank unfolds: http://bit.ly/2qfNEFo.
Oversight Dems want vote on Trump tax return bill: Democrats on the House Oversight Committee are calling for a vote on a bill that would force President Trump and all future presidents to release their tax returns.
In a letter to Oversight Chairman Jason Chaffetz (R-Utah), ranking member Elijah Cummings and the panel’s other Democrats ask that the committee get a vote on the Presidential Tax Transparency Act.
“Of course, we support requiring future presidents to disclose their tax returns, but exempting President Trump from this requirement makes no sense at all — especially since every previous president for the past four decades has voluntarily disclosed his tax returns,” the letter said: http://bit.ly/2qfUzP9.
Write us with tips, suggestions and news: slane@digital-staging.thehill.com, vneedham@digital-staging.thehill.com, and njagoda@digital-staging.thehill.com. Follow us on Twitter: @SylvanLane, @VickofTheHill and @NJagoda.