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Economic reality and contradictions beset Trump's tax plan

Economic reality and contradictions beset Trump's tax plan

In proposing to slash business taxes and enact a tax reform of historic proportions, Trump administration officials say they will rely largely on economic growth to make up for the trillions of dollars of lost tax revenue.

But hardly any economist or tax policy analyst outside the administration thinks that the core business piece of President Trump’s plan — a reduction in the corporate income tax rate to 15% from the current 35% — will generate anywhere near the growth, job creation and investment needed to pay for itself.

That economic reality makes it highly unlikely that Trump will be able to get his tax proposal in its current form through Congress, even with support from...

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