Investing.com - President Donald Trump’s “wish list” of tax cuts unveiled Wednesday faces a tough hurdle getting through Congress, analysts say.
The proposed cuts include slashing corporation tax from 35% to 15%, lowering key taxes on the wealthiest Americans, reducing the number of tax brackets, abolishing most tax deductions, and a repatriation tax holiday on corporate profits brought back from overseas.
But Trump’s one page plan offered little specific information on how it would be paid for without increasing the deficit.
Maya MacGuineas, the head of the Committee for a Responsible Federal Budget, said the plan could add $3 trillion to more than $5 trillion to the federal deficit over five years.
The CRFB estimates the U.S. economy would have to grow at around 4.5% annually to make Trump’s plan affordable.
On Wednesday, Treasury Secretary Steven Mnuchin said Trump's plan would "pay for itself with growth" and by closing some deductions and credits.
The proposals are likely to face intense scrutiny from both Democrats and fiscal-hawk Republicans, the same Congressional hurdle that Trump was unable to clear with healthcare reform.