Tax Reform Is Nearly Impossible Now

Stan Collender: “Tax reform — the kind of wholesale change to the existing system that was enacted in the 1980s and that Donald Trump has repeatedly promised — requires a politically strong and disciplined president. The magnitude of the changes and the very large number of potential losers from tax reform requires a president who can twist arms (and, if need be, legs), provide political cover for the many tough votes the House and Senate will need to cast and is able to sell the tax bill to what is very likely to be an at least partially skeptical nation.”

“In light of the aftermath of the events in Charlotte, Virginia, and the firing/resignation of Steve Bannon, we now know for sure that Donald Trump is not currently that kind of president and can’t do any of these things.”

“As a result, the comprehensive tax reform Trump so often promised, that congressional leaders so badly seem to want, that the business community is desperate to get and on which so much of the White House’s economic program is based is very unlikely in 2017. And the prospects for 2018 don’t look that good either.”