Opinion: Trump’s tax reform looks like just another of his many tweets [MarketWatch]

Although Donald Trump claims that his forthcoming tax plan will be “phenomenal,” he is in truth not likely to propose something really new.

Before the election, Trump put forth a broad tax plan and then a narrower plan.  But even the narrower plan created a budget deficit of roughly $3 trillion to $4 trillion over 10 years, according to the dynamic scoring of the independent researcher Tax Foundation.  That steep increase in the national debt would present major challenges, given rising interest rates and much larger budget pressures from entitlement programs.

Soon after the election, President Trump lambasted the border adjustment tax ( BAT ) plan of the House Republicans. Then he began to be more favorable to the BAT because he believed — wrongly — that it would impose a large tariff on Mexican imports to pay for the wall.  In fact, the BAT would effectively impose a tax on all imports, which would probably be absorbed by importing companies and their customers.

So there are three main questions about what type of tax plan Trump could propose.

Read the rest at marketwatch.com…

What will happen to Dodd-Frank under Trump’s executive order? [Brookings Institution]

On Friday, February 3, President Trump issued an executive order directing the Secretary of Treasury to report, within 120 days, on whether governmental rules and policies promote or inhibit the order’s Core Principles for Financial Regulation. These generally stated Principles stress investor choice, economic growth and international competition as well as the more traditional goals of financial regulation such as preventing bailouts, analyzing risk and increasing accountability.

Although the executive order did not mention Dodd-Frank by name, President Trump made clear: “We expect to be cutting a lot of Dodd-Frank, because frankly, I have so many people, friends of mine that had nice businesses, they can’t borrow money.” By contrast, the Federal Reserve data show that total loans and leases by banks grew by almost 7% per year during the last three years.