The presidential election is history and Donald J. Trump is President-elect. We all know that Mr. Trump has promised substantial reductions in the federal income tax rates applicable to both individuals and businesses in a major effort to stimulate our economy and provide for GDP growth in excess of 3.5% each year. His vision is to create 25 million new jobs over the next ten years.

The outline of his proposals on federal taxation (the “Trump Tax Plan”) would further increase the standard deduction allowed individuals to close to four times its current level. Tax rates would be substantially reduced particularly for business profits. As an offset, the Trump Tax Plan would limit or remove certain tax deductions or credits that have long been part of our Internal Revenue Code.

The Trump Tax Plan is estimated to reduce federal gross revenues by close to $10 trillion over its so-called “scoring period” of ten years. It is expected, however, that the expected increase in capital investment in the United States, growth in jobs in various domestic financial markets, and the tax on the repatriation of trillions of dollars of offshore profits warehoused for years by large public and private concerns will more than exceed the cost of the tax reduction and thereby reduce the overall federal deficit.