Stockman Slams Trump’s “Dead On Arrival” Tax Plan, Warns Wall Street’s “Delusional” For Believing It
by Tyler Durden
ZeroHedge.com
May 1, 2017
David Stockman has a stern message for investors: They’re living in a fantasy land about Trump.
“I don’t know what the stock market is thinking but if they have faith in a giant fiscal stimulus and tax cut then it’s a delusional faith that’s going to be badly disappointed and I think fairly soon,” rages the former director of the Office of Management and Budget under President Reagan, during a recent interview with CNBC.
Stockman said that “Wall Street is totally misreading Washington,” and President Trump’s promises of tax reform will be “dead before arrival.”
The president is “essentially a 70-year old kid in a candy store who wants one of everything: More for defense, veterans, border walls, law enforcement, infrastructure and ‘phenomenal’ tax cuts, too—without the inconvenience of paying for any of it,” said Stockman.
Of the proposed tax bill announced this week, he said, “It’s a wonderful fantasy…but there’s no way to pay for the $7.5 trillion cost of the main features.”
“I like [the tax plan] but you have to pay for it either with a new tax like the border adjustment tax, which is dead, or spending cuts which Trump has ruled off the table,” Stockman explained. “What you have down there is a total fiscal calamity that is going to basically dominate Washington.”
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