Frank Donatelli Executive Vice President Director Federal Public Affairs Gov Jim Hodges Senior Advisor Director South Carolina Government Relations 2017 A Full Plate and They Wont Be Sharing Dessert ID: 622464
Download Presentation The PPT/PDF document "The First 90 days of the Trump Administr..." is the property of its rightful owner. Permission is granted to download and print the materials on this web site for personal, non-commercial use only, and to display it on your personal computer provided you do not modify the materials and that you retain all copyright notices contained in the materials. By downloading content from our website, you accept the terms of this agreement.
Slide1
The First 90 days of the Trump Administration: Policies, Politics and What's Ahead
Frank DonatelliExecutive Vice President Director, Federal Public AffairsGov. Jim HodgesSenior AdvisorDirector, South Carolina Government RelationsSlide2
2017- A Full Plate, and They Won’t Be Sharing Dessert
GOP Congressional AgendaOverhauling the Tax CodeHealthcare ReformReversing Obama-era RegulationsTrump NominationsSupreme CourtTrump Administration AgendaOverhauling the Tax CodeInfrastructure ReformImmigration ReformHealthcare ReformRenegotiating Trade DealsSlide3
Healthcare ReformSlide4
GOP control of Executive Branch and Congress means they are poised to act on its promise to repeal the
ACASenate budget resolution passed in Jan. 2017Congressional Republicans have signaled the possibility of a “repeal and transition” strategyUncertainty & instability of markets with repealThe House Freedom Caucus/Tea Party Senators
Leaked House GOP Policy Brief/Discussion Draft
Mixture of policies from Ryan’s House GOP Blueprint & HHS Secretary Price’s repeal bills
Senate Plans
Timeline: Speaker Ryan says repeal to happen before end of 2017
Obamacare Repeal & Replace: A Bitter Pill to SwallowSlide5
Tom Price confirmed as HHS Secretary on Feb. 10 on party line vote (52-47)Seema Verma, Trump’s choice to lead CMS, was voted out of Committee on March 1
President Trump and HHS Secretary Price developing their own ACA repeal/ replace planExpected Mid-MarchTimeline: Puts full-repeal deadline at 2018“Insurance for everybody”?Purchase coverage through the use of tax credits and expanded Health Savings Accounts Trump Campaign Healthcare Platforms Similar to Ryan’s GOP Blueprint
Day One Executive
Order
to Minimize
the Economic
Burden of ACA
Executive Order to Stabilize Insurance Market
Obamacare Repeal & Replace: A Bitter Pill to SwallowSlide6
Overhauling the Tax CodeSlide7
Like 1986, Tax Reform Fundamentals Are in Place
Separate Reconciliation Instructions for Health Care and Tax ReformHouse and Senate have divergent approachesHouse GOP Tax Reform Blueprint – HighlightsMove the U.S. towards a territorial tax systemLower corporate and individual tax rates
Establish a destination-based cash flow tax system – the proposed border adjustment tax (“BAT”) is the
linchpin
Senate plans to release its own tax reform framework – this
could look
quite different from the House
plan
President has his own ideas
Tax Reform- Back to the Future of 1986Slide8
Tax Reform- Back to the Future of 1986
House GOP Blueprint – Pro-Growth ApproachCalls for a significant reduction of the corporate tax rate: 35 percent 20 percentProvides full expensing and eliminate the interest expense deduction
Eliminates a host of deductions, credits, and exemptions to help pay for the rate
reduction
Moves the U.S. to a territorial system with border
adjustability
Senate
Tax
Reform
Models
Portman-Schumer International Framework
Lowers the corporate tax rate
Sets limitations on interest expensing
Includes repatriation
No border adjustment, but provisions to limit companies’ ability to move profits offshore
Hatch Integration Plan
Eliminates the corporate tax rate
Chairman Hatch appears to have backed off pushing this plan Slide9
Steve Mnuchin confirmed (53 to 47) as Secretary of the Treasury on Feb. 13
What to Expect from a Trump Tax PlanCalls for a simpler, fairer, and flatter tax codeA shift to a territorial tax system that will help U.S. firms to be globally competitive once againA reduction in the individual tax rate so that American workers can keep more of what they earn A
reduction in the business tax rate to help stem the tide of corporate inversions
a
tax cut package for the middle class that may include a deduction for child care expenses, a federal education tax credit, and an increase to the standard deduction
Tax Reform- Back to the Future of
1986Slide10
Renegotiating Trade DealsSlide11
Trans-Pacific Partnership (TPP)On Day 1, President Trump withdrew the U.S. from TPP, fulfilling his campaign promise
North American Free Trade Agreement (NAFTA)President Trump has made it clear he wants to renegotiate NAFTA – specifics are not known More bilateral trade agreements, as opposed to regional agreements (i.e. TPP), with this AdministrationTrump created the White House National Trade Council Wilbur Ross confirmed with bipartisan support (
72-27) as Secretary of Commerce on Feb. 27
Trump’s USTR Candidate Robert
Lighthizer has yet to have a hearing scheduled..
Majority GOP support for free trade platform contradicts Trump’s protectionist trade agenda
NAFTA originally
passed with the support of 66 percent of Republicans in the House and 80 percent of Republicans in the
Senate
Renegotiating Trade Deals- The Elephant in the RoomSlide12
Infrastructure ReformSlide13
President Trump campaigned for a $1 trillion infrastructure planPublic private partnerships, direct federal funding, revenue neutral tax credits for investment
Bridges, pipelines, highways, powerlines, ports, dams, etc.Two core principles: Buy American, and Hire AmericanJan. 24 executive orders to expedite environmental review and approval of high-priority infrastructure projects and to accelerate the Keystone XL and Dakota Access pipeline projects Trump Transition Priority Project List to NGA- 50 infrastructure projects nationwide, totaling at least $137.5 billion
Bipartisan support for confirmation of Elaine Chao as Transportation Secretary on Jan. 31
Strong GOP opposition to direct federal funding bill
Senate Democrats introduced a detailed $1 trillion plan in January
Highway Trust Fund
heading toward a major fiscal cliff in
2021
2018 Priority or part of Tax Reform?
Infrastructure Reform: Building Bridges to Nowhere?Slide14
Immigration ReformSlide15
Immigration Reform: The World’s Most Exclusive Party
No real movement in CongressPerdue-Cotton Immigration billTrump has made it clear that immigration and protecting the U.S. borders will be a top issue for the Administration. 3 Current Executive Orders1 Pending Executive Order to Modify Travel Ban (Suspended by the Courts) With more immigration executive orders expected on other immigration related topics, such as H1-B visas, it is evident that Trump plans to use his executive powers to help drive his immigration agenda. Trump’s Joint Address to Congress Laid out Vision for Immigration
Called for Rs and Ds to Work
T
ogether
Merit-based System
Optimistic
that
immigration
r
eform is possible, with theme of America FirstSlide16
Questions or Comments?
www.mcguirewoodsconsulting.com
/McGuireWoodsConsulting
@MWConsulting
© McGuireWoods
Consulting
LLC