Estate Tax on the Chopping Block, Trump Advisor Says

The top White House economic advisor left no doubt Friday that a major fall tax reform push will seek to eliminate the estate tax.

In a lengthy interview with Financial Times published today, Gary Cohn, chief economic advisor to President Donald J. Trump, said tax reform will begin moving next week.

He proceeded to reveal the most details known to date:

“On the personal side, we have protected the three big deductions — charitable, mortgage and retirement saving,” he told Financial Times. “We want to raise the standard deduction caps and get rid of many of the other personal deductions. We want to get rid of death taxes and estate taxes.

“On the business side, we are proposing to get rid of many of the deductions that companies can take right now to lower taxable income. At the moment we start with a high corporate tax rate in America but companies use deductions: what we are trying to do is get everyone to pay at a lower rate.”

The estate tax is crucial to life insurance sales, as wealthy clients seek to protect themselves from a big bill being handed to their heirs. It should be noted that the estate tax is frequently mentioned as a target, but seems to always survive.

As expected, Cohn confirmed that a “border adjustment tax” is off the table. Conceived by House Speaker Paul Ryan, R-Wis., the border tax was projected to raise $1 trillion by taxing imports.

It was also once viewed as a key pillar to the GOP tax reform vision, as it would pay for corporate tax cuts while discouraging companies from shifting jobs overseas.

How Low Can They Go?

Trump has previously said he wants the corporate tax rate cut to 15 percent. Cohn stayed away from hard numbers, saying only that he wants rates cut “as low as possible.”

During the interview, Cohn stressed that Congress will lead the way on tax reform. In particular, the House Ways and Means Committee, chaired by Rep. Kevin Brady, R-Texas, will be writing the legislation.

Trump will be touring the country speaking about the need for tax reform, Cohn said.

InsuranceNewsNet Senior Editor John Hilton has covered business and other beats in more than 20 years of daily journalism. John may be reached at [email protected].

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InsuranceNewsNet Senior Editor John Hilton has covered business and other beats in more than 20 years of daily journalism. John may be reached at [email protected]. Follow him on Twitter @INNJohnH.