In view of the analysts at TDS, the Mnuchin-Cohn press briefing on Trump’s tax plan was as presaged: a high-level overview of the Administration’s tax reform objectives, but still light on the crucial details.
“The announcement itself laid out a plan similar in size and scope as his prior public comments. That said, some specific details regarding corporate taxation were left out, along with how the measures would be funded. As such, the announcement was met with little fanfare from markets, which reacted with modest disappointment in the form of lower rates and USD.”
“Overall, yesterday’s announcement is hardly a step forward for the tax reform time line, but mainly an affirmation of the Administration’s policy priorities. If anything, the plan suggests significantly higher deficits over a 10-year horizon, implying a difficult road ahead for passage.”