The Finance 202: Trump administration gets real about cost of its tax plan
Donald J. Trump
Trump . (AP /Carolyn Kaster)
So much for the metaphysics of dynamic growth.  The Trump team  late last year argued the tax package would unleash so much economic activity that the Treasury wouldn’t notice a permanent  40 percent reduction in the corporate rate (the real reduction turned out to be 14 percent). The contention didn't survive the winter.
— Plan shifts burden to state and private money. NYT's Patricia Cohen and Alan Rappeport: " Trump ’s $200 billion plan to rebuild America upends the criteria that have long been used to pick ambitious federal projects  putting little emphasis on how much an infrastructure proposal benefits the public and more on finding private investors and other outside sources of money. Unveiled on Monday  the infrastructure program that  Mr. Trump  has championed since the campaign is intended to attract a huge amount of additional money from states  localities and private investors. The goal is to generate a total pot of $1.5 trillion to upgrade the country’s highways  airports and railroads. Those financial priorities are crystallized in the new guidelines established by the White House. The ability to find sources of funding outside the federal government will be the most important yardstick  accounting for 70 percent of the formula for choosing infrastructure projects. How “the project will spur economic and social returns on investment” ranks at the bottom  at just 5 percent."
Dems say  Trump  wants to cuts more than  he  spends. The Post's John Wagner: "Besides unveiling  his  infrastructure plan   Trump  also released  his  2019 budget blueprint Monday. Combing through it  the office of Senate Minority Leader Charles E. Schumer (D-N.Y.) identified more than $240 billion in proposed cuts over the coming decade to an array of existing infrastructure programs — a higher number than what  Trump  is proposing in 'new' spending."
 Trump  weighed in this morning:
Our infrastructure plan has been put forward and has received great reviews by everyone except  of course  the Democrats. After many years we have taken care of our Military  now we have to fix our roads  bridges  tunnels  airports and more. Bipartisan  make deal Dems? — Donald J. Trump (@realDonaldTrump) February 13  2018
(The SEC and CFTC requests earned a rare nod of approval for the  Trump  administration from the watchdog group Better Markets  which called them "an important recognition that the cops on the Wall Street beat don’t have the funding they need to do their jobs protecting the American people.")
— Spending plans. Politico's Sarah Ferris: "Alongside its original budget request  the  Trump  administration Monday also released the details of what it would recommend doing with the extra money for domestic programs included in Congress' spending deal enacted last week. That includes an increase to the State Department  which the administration’s original document proposed to slash by 30 percent this coming fiscal year. The extra cash would go into the budget for the United Nations  humanitarian aid and global AIDS programs. Each of those efforts would have been cut under  Trump ’s original plan."
The Department of Rosy Scenario is doing a lot of work in  Trump 's budget. — Steven Dennis (@StevenTDennis) February 13  2018
— BAT redux. Politico's Doug Palmer: " Trump  on Monday said  he  wants to impose a "reciprocal tax" on imports from countries that have higher tariffs than the U.S. 'We are going to charge countries outside of our country — countries that take advantage of  the United States ' Trump  said at a White House meeting with state and local government officials about the administration's infrastructure plan...  Trump  seemed to be complaining about the U.S.' relatively low duty structure when compared with those of some other countries."
It surprised  his  aides  "who warned that no formal plans have been prepared " per WSJ's Michael Bender.
Dollar Stores Hammered by Trump Proposal to Abandon Food Stamps A  Trump  administration proposal to reduce food-stamp benefits is casting a cloud over U.S. dollar-store chains. Bloomberg
What did  Trump  propose cutting in  his  2019 budget? Check out this great graphic from the Post staff:
 President Trump  said the decline in U.S. infrastructure and increase in the deficit was caused by "laziness" after World War II:
[TGT] . (AP /Carolyn Kaster)
So much for the metaphysics of dynamic growth.  [TGT]late last year argued the tax package would unleash so much economic activity that the Treasury wouldn’t notice a permanent  40 percent reduction in the corporate rate (the real reduction turned out to be 14 percent). The contention didn't survive the winter.
— Plan shifts burden to state and private money. NYT's Patricia Cohen and Alan Rappeport: " [TGT] ’s $200 billion plan to rebuild America upends the criteria that have long been used to pick ambitious federal projects  putting little emphasis on how much an infrastructure proposal benefits the public and more on finding private investors and other outside sources of money. Unveiled on Monday  the infrastructure program that  [TGT]has championed since the campaign is intended to attract a huge amount of additional money from states  localities and private investors. The goal is to generate a total pot of $1.5 trillion to upgrade the country’s highways  airports and railroads. Those financial priorities are crystallized in the new guidelines established by the White House. The ability to find sources of funding outside the federal government will be the most important yardstick  accounting for 70 percent of the formula for choosing infrastructure projects. How “the project will spur economic and social returns on investment” ranks at the bottom  at just 5 percent."
Dems say  [TGT]wants to cuts more than  [TGT]  spends. The Post's John Wagner: "Besides unveiling  his  infrastructure plan   [TGT]  also released  his  2019 budget blueprint Monday. Combing through it  the office of Senate Minority Leader Charles E. Schumer (D-N.Y.) identified more than $240 billion in proposed cuts over the coming decade to an array of existing infrastructure programs — a higher number than what  [TGT]is proposing in 'new' spending."
 [TGT]weighed in this morning:
Our infrastructure plan has been put forward and has received great reviews by everyone except  of course  the Democrats. After many years we have taken care of our Military  now we have to fix our roads  bridges  tunnels  airports and more. Bipartisan  make deal Dems? — Donald J. Trump (@realDonaldTrump) February 13  2018
(The SEC and CFTC requests earned a rare nod of approval for the  Trump  administration from the watchdog group Better Markets  which called them "an important recognition that the cops on the Wall Street beat don’t have the funding they need to do their jobs protecting the American people.")
— Spending plans. Politico's Sarah Ferris: "Alongside its original budget request  the  Trump  administration Monday also released the details of what it would recommend doing with the extra money for domestic programs included in Congress' spending deal enacted last week. That includes an increase to the State Department  which the administration’s original document proposed to slash by 30 percent this coming fiscal year. The extra cash would go into the budget for the United Nations  humanitarian aid and global AIDS programs. Each of those efforts would have been cut under  [TGT] ’s original plan."
The Department of Rosy Scenario is doing a lot of work in  Trump 's budget. — Steven Dennis (@StevenTDennis) February 13  2018
— BAT redux. Politico's Doug Palmer: " [TGT]  on Monday said  [TGT]  wants to impose a "reciprocal tax" on imports from countries that have higher tariffs than the U.S. 'We are going to charge countries outside of our country — countries that take advantage of  the United States ' [TGT]said at a White House meeting with state and local government officials about the administration's infrastructure plan...  [TGT]seemed to be complaining about the U.S.' relatively low duty structure when compared with those of some other countries."
It surprised  [TGT]  aides  "who warned that no formal plans have been prepared " per WSJ's Michael Bender.
Dollar Stores Hammered by Trump Proposal to Abandon Food Stamps A  [TGT]  administration proposal to reduce food-stamp benefits is casting a cloud over U.S. dollar-store chains. Bloomberg
What did  [TGT]  propose cutting in  [TGT]  2019 budget? Check out this great graphic from the Post staff:
 [TGT]said the decline in U.S. infrastructure and increase in the deficit was caused by "laziness" after World War II: