The Drivers of Trump's Tax Cut Plan

The video discusses the financial implications of eliminating state and local tax deductions, which could save $1 trillion over a decade, affecting individual tax reductions. It also covers the potential reduction of the corporate tax rate from 35% to 20%, costing approximately $1.5 trillion in foregone revenue over ten years. The loss of the border adjusted tax, which could have raised $1 trillion, is noted, and alternative revenue proposals are considered, including those from a 2014 bill by Chairman Dave Camp. The Senate's discussion of a $1.5 trillion tax cut is also highlighted.

Why is the elimination of the deduction for state and local taxation considered crucial?

• It increases state revenue.

• It directly affects business tax rates.

• It is a significant source of revenue for funding tax cuts.

• It simplifies the tax code.

What is the estimated cost of reducing the corporate tax rate from 35% to 20%?

• $1.5 to $1.7 trillion

• $1 trillion

• $500 billion

• $2 trillion

What is the rule of thumb for calculating the cost of a one-point reduction in the corporate tax rate?

• $50 billion

• $150 billion

• $200 billion

• $100 billion

What was the purpose of the border adjusted tax that is no longer on the table?

• To increase individual tax rates

• To reduce corporate tax rates

• To raise roughly a trillion dollars

• To simplify the tax code

What is the Senate's proposed amount for the tax cut, and what does it imply?

• $2 trillion, implying more tax relief

• $1 trillion, implying more revenue raising

• $2.5 trillion, implying more deductions

• $1.5 trillion, implying less base broadening