US President Donald Trump to announce important tax reform next week
- Author: Zachary Reyes Apr 22, 2017,
Apr 22, 2017, 20:00
Trump also will sign an executive order directing Treasury Secretary Steven T. Mnuchin to review significant changes to the tax code made a year ago to determine if they "impose an undue financial burden on American taxpayers", "add undue complexity" or "exceed statutory authority", the White House said.
The date will be just prior to the end of Trump's first 100 days in office.
Treasury Secretary Steven Mnuchin said a "significant" issue to be examined will be the crackdown by Obama on inversions, which are mergers that enable US firms to relocate their headquarters overseas where tax rates are lower.
Mnuchin said earlier on Thursday that Treasury is working on tax reform "day and night" and will soon create a sweeping overhaul.
The dollar and US stocks rose after Mnuchin's comments, which come as the White House and congressional Republicans are at odds over whether to try for another vote on replacing Obamacare next week. Yet by the time Republicans in Congress get around to tax reform, Brownback's fiscal plan could be history-and it'll be his own party that kills it.
Mnuchin said the administration's tax priorities are to simplify personal taxes, create middle-class tax cuts and make business taxes competitive.
However, Trump's tax reform executive order also appears to be duplicative.
And Goldman - which has at least a half-dozen alums in the Trump administration - decried the "continued delays" that health care has imposed on the tax reform timeline, according to a note this week.
Trump walked down street across the White House to the Treasury Department to sign the executive orders which he said is part of his effort to revive the American economy and bring jobs back to the US. Regardless, he is still confident that an overhaul of the US tax code will happen before the year is up.
"I appreciate the president's leadership and strong commitment to comprehensive tax reform", House Ways and Means Committee chairman Kevin Brady said in a statement. The details of the tax bill are likely to be complicated by the continued uncertainty over healthcare reform, which is now being renegotiated.
"We're going to determine if they're needed in the tax code, or if they're unnecessary".
Mnuchin said United States corporate tax rates are among the highest in the world, and have caused companies to understandably park their earnings offshore. He also said the White House's tax overhaul plan wouldn't increase the federal deficit. So, we know Trump in the campaign talked about taking the 35 percent corporate rate down to 15 percent.
While those proposals are in flux - and the rates in Trump's ultimate plan may vary - it's unclear how the administration will propose to pay for such rate reduction.
"President Trump is absolutely committed to make sure taxpayers are not at risk for government bailouts for entities that are too big to fail", he said.
He said to Mnuchin, a former Goldman Sachs banker and hedge fund manager: "I think Hamilton is tough to beat, but maybe you can do that too".