Trump to sign two financial executive orders on Friday
- Author: Zachary Reyes Apr 21, 2017,
Apr 21, 2017, 2:45
The Trump administration's priority is boosting U.S. growth through tax cuts and an overhaul of regulations, and a growing American economy will be good for the world, Treasury Secretary Steven Mnuchin said Thursday.
"It will be soon, very soon", Mnuchin said when asked for a timeline during a question and answer session on the sidelines of the International Monetary Fund and World Bank spring meetings in Washington.
"But the majority of it will be made up by what we believe is fundamentally growth and dynamic scoring", he added. Dynamic scoring refers to complex economic models that take into account the impact of tax policies on economic growth and consumer well-being. Proponents of the tax say the USA dollar would rise 25 percent to offset the higher price of imported goods.
Mnuchin said the Treasury was working on tax reform options "day and night" but he gave few specifics.
Mr. Cohn said Thursday the administration hadn't decided if it would propose tax changes that would be revenue neutral, but they want changes to the corporate tax code to be permanent.
A congressional tax plan backed by House of Representatives Speaker Paul Ryan would raise over $2 trillion with a border adjustment proposal to tax imports while exempting exports from taxation, and by eliminating net interest deductions for businesses.
Mr. Mnuchin said he has been meeting weekly with House and Senate lawmakers and that the three groups have the same objectives: to simplify individual taxes, create middle-income tax cuts to spur the economy and make US business taxes competitive.
"It will pay for itself with growth", he said of the tax plan which he expects to introduce before the end of the year.
Mnuchin said border adjustment could hurt US exports by driving the dollar higher, or fuel consumer inflation if the dollar does not rise.
Cutting corporate taxes to encourage United States firms to repatriate "trillions of dollars" in foreign earnings now stashed in offshore accounts will drive investment and growth, he said. He also said the White House's tax overhaul plan wouldn't increase the federal deficit.