Mnuchin: No decision yet on labeling China a currency manipulator
- Author: Zachary Reyes Feb 25, 2017,
Feb 25, 2017, 7:55
"We are committed to passing tax reform". It will be very significant.
"One of the important jobs in this parts of the role is to make sure that I reach out to my counterparts and that we're focused on creating objectives that will create economic growth for us and sustained economic growth throughout the world", Mnuchin said.
But House Republicans want assurances that the president's plan of tax cuts, coupled with increased spending, will be revenue-neutral.
The three major U.S. equity indexes closed mixed on Thursday as investors digested the comments made by U.S. Treasury Secretary Steve Mnuchin. The U.S. government has a few tools, through both domestic and worldwide rules, to take action if countries are keeping their currency's value artificially low in order to make their exports cheaper.
The US share market has climbed more than 5 per cent this year on hopes that the White House is about to announce what Trump described as a "phenomenal" tax plan.
Issuing ultra-long Treasury bonds is something "we should seriously look at" with interest rates likely to stay low for a long period, Mnuchin, who was recently confirmed, said during an interview on CNBC.
Mnuchin did not commit to supporting the border adjustment tax but said the administration was "looking closely" at the issues raised by this type of tax.
'So it's something we're going to carefully look at, ' he added.
In addition to tax reform, Congress and the administration are trying to settle on a plan to replace "Obamacare" with new healthcare legislation.
Mnuchin did not rule out potential tax cuts for wealthy earners, but told CNBC that the administration would aim to offset any "high end" tax cuts with reduced deductions and other breaks.
He said he expects the administration to use optimistic economic growth forecasts of 3% or more when it estimates the cost of tax reform. He also wants to deliver economic growth at rates not seen in more than a decade, according to the Wall Street Journal. This would have the effect of boosting assumed revenues from tax reform and relaxation of regulations.