Steve Forbes is Advising Trump On His New "Tax Cut" Proposal

Oh boy. the Washington Post is reporting that Larry Kudlow, Stephen Moore, Steve Forbes and Arthur Laffer are working on a new "tax cut" proposal that Donald Trump will release next week or in early August.

Surprise.

The tax cuts will be smaller than Trump originally proposed.

Trump's current proposal would reduce from nearly 40 percent to 25 percent the top tax rate but Moore told WaPo that the new top rate will fall somewhere between 28 and 33 percent.

But here's the kicker, while the tax rate will go down, deductions will be cut, casuing one to wonder if there will be any effective tax cut.

This is how Moore described the cuts in deductions that have yet to be specifically determined:

We’ve got a few details we’ve got to work out. They’re important details. They’ll have a big impact on how much the plan costs.

WaPo provides an idea of how horrific the tax deduction eliminations might get:

 The rich could see their tax liabilities rise further, compared to Trump's current proposal, depending on how the group decides to change tax deductions. Such deductions could be capped in absolute dollar figures, akin to what 2012 GOP nominee Mitt Romney proposed, or some deductions could be eliminated or reduced, such as the mortgage interest deduction.

Bottom line, Trump is heading toward a tax cut proposal that will be as phony as Ronald Reagan's  tax cuts (SEE: The Truth About Ronald Reagan: The Great Tax Raiser)

Never trust a tax cut that changes in any way the current tax structure, The tax structure should be left alone and tax cuts made from the current structure.

 -RW

UPDATE

The news is getting worse. It is beginning to look like a total crony deal.

The Hill reports:

“If you like the Paul Ryan plan you’re going to like our plan,” Trump adviser Stephen Moore said at an event hosted by Politico during the Republican National Convention in Cleveland. Moore said the new Trump plan and the Ryan plan will overlap by about 75 percent...

Trump's decision to revise the plan could be a sign that he is seeking to bolster his support among congressional Republicans, many of whom have been skeptical of his candidacy.

"There really isn't a heck of a lot of daylight" between what Trump will release and what House Republicans have put forward, Kudlow said.

House Ways and Means Committee Chairman Kevin Brady (R-Texas) agreed that the tax plans from Trump and House GOP will be similar.