Mnuchin: Trump's first budget won't touch entitlements
- Author: Zachary Reyes Feb 27, 2017,
Feb 27, 2017, 21:11
Speaking on the Fox News show Sunday Morning Futures new Treasury Secretary Steven Mnuchin said that the next United States budget will not cut spending on either program. He will, however, reduce spending on social programs significantly.
The White House refused to confirm reports on Trump's forthcoming budget proposal.
Mnuchin said Trump would use a major policy speech to a joint session of Congress on Tuesday night to preview some elements of his sweeping plans to cut taxes for the middle class, simplify the tax system and make American companies more globally competitive with lower rates and changes to encourage US manufacturing.
This is because the debt fluctuates naturally over time depending on the government's existing schedule of payments, tax collections, and other factors.
In an interview with USA broadcaster Fox News, Treasury secretary Steven Mnuchin said: "We're going to start with tax reform".
"The American economy has been too slow for too long and we're going to start with tax reform". "And we're doing it under lightning-fast proposals". In a comment suggesting that Trump's budget and tax plan may use aggressive revenue assumptions, Mnuchin said the administration "fundamentally believes in dynamic scoring", a budget calculation method that assumes that a lower tax burden boosts revenues by encouraging economic activity. "U.S. companies ... just haven't had that opportunity".
The Trump administration policy on entitlements is unclear.
By reforming the tax code, the administration believes companies will bring back "trillions of dollars" sitting offshore and "redeploy" the money in the US, according to Mnuchin.
Amid concerns about Trump wanting to end or renegotiate worldwide trade deals, Mnuchin said the president will not be getting into "trade wars" with other countries. The Treasury secretary explained that while the president is a proponent of free trade, he also believes in fair trade.
The administration is exploring what it calls a "reciprocal tax" to ensure imports are treated the same way as US exports while avoiding trade wars. Such a move would give Congress more control over the agency, which was formed in 2011 as part of the Dodd-Frank Wall Street reforms enacted after the 2007-08 financial crisis.