Trump tax plan may produce some short-term budget issues: Mnuchin

Trump tax plan may produce some short-term budget issues: Mnuchin

Trump tax plan may produce some short-term budget issues: Mnuchin

President Donald Trump on Friday signed executive actions directing the Treasury Department to review two key Dodd-Frank powers and identify burdensome or unnecessarily complex tax rules. House Republicans also want to lower tax rates for small businesses to 25 percent. It will be a few broad principles and maybe some guidelines. We have a tax code that is just very uncompetitive for our U.S. businesses. But many community banks have complained the regulations imposed too many burdens on them, and large banks have complained about what they see as excessive compliance costs that get in the way of lending.

Some commentators suggest that Trump is rushing the tax announcement to give his administration a shot in the arm before the symbolic marker of its 100th day.

Mnuchin has said, though, that the Treasury Department continues to work on tax reform "day and night". That report must also be provided to the commander in chief within 180 days.

In an hour long interview with the Associated Press, the President also hyped his own tax reform announcement for next week, saying the tax cuts he will propose would be "massive". According to MSNBC, both House Speaker Paul Ryan and Mick Mulvaney, the head of the Congressional Budget Office, have previously stated their opposition to the idea that tax cuts produce enough growth to pay for themselves. White House National Economic Council Director Gary Cohn suggested on Thursday that numerous details were still in flux during comments he made to the Institute of International Finance.

One of the most sweeping tax regulations imposed in 2016 was written by the Obama administration's Treasury Department and it made it much harder for companies to use a process known as "inversion" to incorporate overseas in places like Ireland so that they could avoid paying US taxes.

Mr Trump's comments came as he signed an executive order on Friday ordering a review of Obama-era tax rules in order to simplify the tax code, in part, a way of encouraging United States companies to stay in the US.

"They need some permanence in the tax code", said Trump's top economic adviser Gary Cohn.

The corporate tax rate is now 35 percent. And even members of the GOP who agree that tax cuts can significantly boost growth have acknowledged that any big tax cut would require raising other revenue or finding budget savings.

Trump called the "simplification" of the tax code "such a big thing" during remarks prior to the order's signing, claiming that "people can't do their returns".

But despite Mr Trump's statement that his tax overhaul "really formally begins on Wednesday", White House officials quickly cautioned against high expectations that Mr Trump would provide the legislative text of a detailed tax plan this week. Lawmakers have been anxiously waiting for more details of Trump's plan for weeks.

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