President Donald Trump visited Springfield, Missouri, Wednesday on the first leg of a multistop campaign to rally support for tax reform. In his speech, Trump laid out four guiding principles:
- A tax code that’s “simple, fair and easy to understand” and closes “loopholes” for the wealthy and special interests
- A decrease in business tax rates to encourage global competitiveness for American companies
- Tax relief for middle-class families to help boost household spending
- A mechanism for bringing back trillions of dollars in wealth currently trapped overseas
The speech focused on a plea for unity behind Trump’s “American model” for economic growth, which calls for “common sense and common good.” Trump committed to working with Congress to accomplish tax reform, saying, “Let’s try to put the partisan posturing behind us to bring America the tax reform they deserve.” The tax reform proposals’ specifics were not addressed during the visit, and a fact sheet released by the White House provides little detail on plans for implementing Trump’s four principles.
After Trump’s visit, the overall outlook on tax reform remains uncertain. Trump’s speech gave us little insight into the unanswered questions we had going into the event. While Trump’s tax advancement campaign provides momentum to reform efforts, many key aspects still must be worked out. In addition, Congress faces a crowded calendar after returning from the August recess next week.
See BKD’s recent article, “Are We There Yet? An Update on Tax Reform Efforts,” to learn more about the current status of tax reform, and keep an eye on BKD’s Tax Reform Resource Center to stay up to date on tax reform efforts.