Foreign Affairs LIVE: Trump and the Global Economy
Exclusive Access to a Critical Conversation

 

A perspective on the past and an inside look at what lies ahead
In partnership with Foreign Affairs magazine, Wilmington Trust and M&T Bank hosted a special evening on June 1 in Washington, DC. CNN's Jim Sciutto moderated a bipartisan panel discussion, which featured political luminaries from the Council on Foreign Relations and the Heritage Foundation.

Against a backdrop of heightened uncertainty and unprecedented geopolitical turmoil, the spirited conversation shed light on complex issues facing market participants and global citizens today. Political-insider panelists first took a look back at the first few months of Donald Trump’s presidency and then shared their uniquely insightful perspectives on what’s ahead on the home front and beyond.


President Trump and the Global Economy
Exclusive access to a critical conversation, in which economy and policy experts share what you need to know about the outlook for tax reform and the potential impacts of expected U.S. economic growth.



President Trump's tax proposal
Compare President Trump’s tax proposal to current law and GOP proposals.





Pictures from the Event

President Trump's Tax Proposal
Relevant to High-Net-Worth Taxpayers Compared to Current Tax Law
and the House GOP Proposals


Federal Income Tax
Rates on ordinary income
Current Law in 2017
7 brackets with a top rate of 39.6%
White House April 26th Proposal
3 brackets with a top rate of 35%, except for a top rate of 15% on income taxed as sole proprietorship, partnership income, or pass-through income
House GOP Tax Plan
3 brackets with top rate of 33%
Phase out of itemized deductions and personal exemptions
Current Law in 2017
Applies to AGI over: $261,500 (single); $313,800 (married)
White House April 26th Proposal
Eliminates most itemized deductions, including state and local income tax deduction. Retains home mortgage interest and charitable contribution deductions.
House GOP Tax Plan
Eliminates all itemized deductions, except for mortgage interest and charitable contributions
Standard Deduction
Current Law in 2017
$6,350 (single); $12,700 (married)
White House April 26th Proposal
Doubles the standard deduction
House GOP Tax Plan
$12,000 (single); $18,000 (single with child); Standard deduction of $24,000 (married)
Alternative minimun tax
Current Law in 2017
28% minimum rate, with exemption amount of: $54,300 (single); $84,500 (married); $24,100 (Trusts)
White House April 26th Proposal
Eliminates
House GOP Tax Plan
Eliminates
Rates on capital gains /dividends
Current Law in 2017
Top rate of 20%; 1-year holding period
White House April 26th Proposal
Top rate of 20%; 1-year holding period
House GOP Tax Plan
Taxes capital gains, dividends, and interest income as ordinary income, but provides a 50% exclusion; the equivalent of a top rate of 16.5%; 1-year holding period
Surtax on net investment income
Current Law in 2017
3.8%, above $200,000 AGI (single); $250,000 (married); Trusts with income over $12,500
White House April 26th Proposal
Eliminates
House GOP Tax Plan
Proposed American Health Care Act repeals surtax
Retirement accounts
Current Law in 2017
No limit on lifetime contributions
White House April 26th Proposal
No specific proposal, except April 26th briefing referred to protecting retirement savings
House GOP Tax Plan
"Continue tax incentives for retirement savings"


Federal Transfer Tax
Estate tax rate and exemption
Current Law in 2017
Top tax rate of 40% - $5,490,000, as adjusted for inflation
White House April 26th Proposal
Eliminates estate tax
House GOP Tax Plan
Eliminates estate tax
Lifetime gift tax exemption
Current Law in 2017
Top tax rate of 40% - $5,490,000, adjusted for inflation
White House April 26th Proposal
Eliminates estate tax, but no specific proposal on lifetime gift tax exemption
House GOP Tax Plan
No specific proposal
Generation-skipping transfer tax rate and exemption
Current Law in 2017
Top tax rate of 40% - $5,490,000, as adjusted for inflation
White House April 26th Proposal
Eliminates estate tax, but no specific proposal on generation-skipping transfer tax
House GOP Tax Plan
Eliminates generation-skipping transfer tax
Portability of estate and gift tax exemption
Current Law in 2017
Unused exemption of deceased spouse available (with limitations)
White House April 26th Proposal
Eliminates estate tax, but no specific proposal on gift tax or portability
House GOP Tax Plan
Eliminates estate tax, but no specific proposal on gift tax
Basis of inherited assets
Current Law in 2017
Stepped up to fair market value at death
White House April 26th Proposal
No specific proposal. The Trump campaign proposal taxed capital gains held until death, with $10 million exemption for small businesses and family farms. The campaign proposal also "disallowed" contributions of appreciated assets "into a private charity" established by decedent or decedent’s family.
House GOP Tax Plan
No specific proposal
Gift tax annual exclusion
Current Law in 2017
$14,000 per donee as indexed for inflation
White House April 26th Proposal
No specific proposal
House GOP Tax Plan
No specific proposal


Federal Business Tax
Corporate Income Tax
Current Law in 2017
Top rate of 35%
White House April 26th Proposal
Top rate of 15%
House GOP Tax Plan
Top rate of 20%
Pass-Through Business Income
Current Law in 2017
Top rate of 39.6%
White House April 26th Proposal
Top rate of 15%
House GOP Tax Plan
Top rate of 25%
International Tax
Current Law in 2017
Worldwide tax system
White House April 26th Proposal
Does not propose border adjustment tax
Proposes repatriation tax, no rate specified
Proposes territorial tax system, no details specified
House GOP Tax Plan
Proposes border adjustment tax
Proposes detailed repatriation tax
Proposes detailed territorial tax system
Taxation of carried interests
Current Law in 2017
Taxed as capital gains
White House April 26th Proposal
No specific proposal; the Trump campaign proposal taxed as ordinary income
House GOP Tax Plan
No specific proposal
The two plans compared in this summary are based on the outline of the tax reform proposals the Trump administration released on April 26, 2017, and the proposal the House GOP put forth in June 2016. The topics addressed are those most relevant to high income and high-net worth taxpayers.  As stated at the April 26th press conference, the Administration’s proposals are at the beginning of a process to develop a detailed tax plan. Currently, there is not sufficient detail for taxpayers to rely on the Administration’s proposals, nor is there enough detail to calculate the fiscal impact of the proposals.


Jim Sciutto - Moderator

CNN's Chief National Security Correspondent



Heidi Crebo-Rediker

Adjunct Senior Fellow, Council on Foreign Relations
Chief Executive Officer, International Capital Strategies
Former First Chief Economist, U.S. State Department (2012-2013)


Michael Froman

Distinguished Fellow, Council on Foreign Relations
Former U.S. Trade Representative (2013-2017)
Former Assistant to the President and Deputy National Security Advisor for International Economic Affairs (2009-2013)


Stephen Moore

Senior Fellow, Heritage Foundation
Senior Economics Analyst, CNN
Former Senior Economic Advisor to Donald Trump for President
Former member of the Wall Street Journal editorial board


Gideon Rose

Editor of Foreign Affairs
Former Associate Director for Near East and South Asian Affairs, National Security Council
Author of How Wars End (Simon & Schuster, October 2010)



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A perspective on the past and an inside look at what lies ahead
In partnership with Foreign Affairs magazine, Wilmington Trust and M&T Bank hosted a special evening on June 1 in Washington, DC. CNN's Jim Sciutto moderated a bipartisan panel discussion, which featured political luminaries from the Council on Foreign Relations and the Heritage Foundation.

Against a backdrop of heightened uncertainty and unprecedented geopolitical turmoil, the spirited conversation shed light on complex issues facing market participants and global citizens today. Political-insider panelists first took a look back at the first few months of Donald Trump’s presidency and then shared their uniquely insightful perspectives on what’s ahead on the home front and beyond.



President Trump and the Global Economy
Exclusive access to a critical conversation, in which economy and policy experts share what you need to know about the outlook for tax reform and the potential impacts of expected U.S. economic growth.



President Trump's tax proposal
Compare President Trump’s tax proposal to current law and GOP proposals.



Pictures from the Event


Jim Sciutto - Moderator

CNN's Chief National Security Correspondent



Heidi Crebo-Rediker

Adjunct Senior Fellow, Council on Foreign Relations
Chief Executive Officer, International Capital Strategies
Former First Chief Economist, U.S. State Department (2012-2013)


Michael Froman

Distinguished Fellow, Council on Foreign Relations
Former U.S. Trade Representative (2013-2017)
Former Assistant to the President and Deputy National Security Advisor for International Economic Affairs (2009-2013)


Stephen Moore

Senior Fellow, Heritage Foundation
Senior Economics Analyst, CNN
Former Senior Economic Advisor to Donald Trump for President
Former member of the Wall Street Journal editorial board


Gideon Rose

Editor of Foreign Affairs
Former Associate Director for Near East and South Asian Affairs, National Security Council
Author of How Wars End (Simon & Schuster, October 2010)



RELATED INSIGHTS

Chaos, confusion, and why we must stay the course
Chief Investment Officer Tony Roth shares his thoughts on the first 100 days of President Trump, including how domestic and foreign political events have held great sway over market performance
  I want to learn more


Capital Perspectives May 2017
Chief Investment Officer Tony Roth explains why the prudent thing to do right now is simply stay the course, in light of all the domestic uncertainty around the trajectory of President Trump’s pro-growth agenda, as well as heightened global risk, despite fortunate events on the European election front
  I want to learn more








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