Trump's Tax Proposal: Priorities, Policy, Politics And Process

Mark Weinberger is the chairman and CEO of the multi-national accounting firm giant EY. He also worked in various tax-related capacities with the Clinton and George W. Bush Administrations and serves as an adviser to President Donald Trump.

Weinberger was a guest on CNBC's "Squawk Box" to talk about the White House's new tax proposal and what investors should be looking out for. According to the tax expert, there are "four P's" required for the tax bill to pass and the absence of any one could derail or kill the tax plan.

The "four P's" he references include: priorities, policy, politics and process.

Priorities

Weinberger stated that the tax plan has "reinvigorated the priorities" for not only Trump but among Republicans in the House and Senate.

The fact that the entire Republican party appears to be united in finalizing passing a tax plan in 2017 is a positive.

Policy

Moving on to policy, Republicans made it clear they're "doubling down on low rates" for businesses and corporations along with individuals and the territorial system.

Similar to priorities, so far so good on the policy front, especially when factoring in new child policies and tax credits.

Politics

Weinberger believes this is where the tax plan becomes cloudy, as "no Democrats are going to be coming to the party."

Weinberger believes the Republican's significant tax cuts isn't something that the Democrats were expecting.

Process

Finally, process is perhaps the biggest issue. Specifically, if the Democrats aren't coming to the table as expected then the process needs to shift to one of reconciliation - something that would be a "really big deal."

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Image: Emily Elconin