Trump to Make Big Tax Reform Announcement Next Week

Remigio Civitarese
Aprile 27, 2017

"This is really the beginning of a whole new way of life that this country hasn't seen in really many, many years", the president said before signing the measures during his first visit to the Department of the Treasury.

"The president will be instructing me to put a hold on that for designations until we do a thorough review and make sure that it's a fair and transparent process", said Mnuchin. Another official said the information released would be more like a "broad" outline. This may include demands by Mr Trump for federal funding to construct his promised wall on the Mexican border. While economists generally don't believe that tax cuts are self-financing, there is growing agreement that they can lead to faster growth and with it additional revenues.

The President said that he will also open up lending to small businesses.

House Bill 1328 passed the House Friday on a partisan vote - just as it did when it passed the House Finance Committee on Monday.

A White House spokeswoman on Monday said there would be "no further comment beyond what the president has said on this".

They will all differ somewhat on variables such as how the tax cuts will affect hours worked and capital investment, and how much higher deficits will curb economic growth, according to Alan Cole, an economist at the Tax Foundation. It would take a number of Democrats to support any tax plan that grows the deficit in the long run because Republicans only have 52 seats in the Senate.

Asked if the plan would be revenue neutral, meaning any reductions in expected revenue from tax cuts would be offset from increases in revenue or spending cuts elesewhere, Mnuchin instead said the plan would "pay for itself" through economic growth.

However, he expected a corporate tax cut and some move to encourage the repatriation of profits by United States multinationals, a development that would affect U.S. multinationals in Ireland.

Most economists say it's unlikely that tax cuts can generate enough gains to avoid swelling the government's red-ink problem — estimated to total $559 billion this year.

Mnuchin said one of the White House's top priorities was to complete "comprehensive economic tax reform", dramatically simplifying how people file their annual returns. "They have no idea what they're doing".

"The Treasury Department is the guardian of America's wealth and a worldwide symbol of America's prestige", Trump said.

Many congressional aides were caught by surprise from Trump's announcement, as White House officials have expressed that they were working hard on a plan but nowhere near ready to provide new information.

"I appreciate the President's leadership and strong commitment to comprehensive tax reform", House Ways and Means Committee Chairman Kevin Brady, R-Texas, said Friday.

The release on Wednesday will come during a critical period for Trump.

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