Mnuchin Says Trump Will Offer 'Biggest Tax Cut' in U.S. History
26 April 2017 - 2:57PM
Dow Jones News
By Richard Rubin and Nick Timiraos
President Donald Trump will propose the largest tax cut in the
country's history as a way to spark sustained 3% economic growth,
Treasury Secretary Steven Mnuchin said on Wednesday.
The plan calls for 15% tax rates on all businesses, deeper than
the rate cuts proposed by House Republicans. Those rates are likely
to drive Democrats away and to cause complications in Congress
because changes in tax policy that the Senate can pass on a
party-line vote under the budget procedure known as reconciliation
aren't allowed to create long-run budget deficits.
Mr. Mnuchin said at an event Wednesday morning that the
administration wants permanent policy changes but temporary cuts
could be considered too.
"This is going to be the biggest tax cut and the largest tax
reform in the history of our country," he said at a conference in
Washington.
The White House plan, set for release this afternoon, opens
monthslong negotiations in Congress.
House Speaker Paul Ryan said Republicans have consensus on the
goals and aims for reducing tax rates.
"We're in agreement on 80%, and then that 20%, we're in the same
ballpark," the Wisconsin Republican said at a separate event.
Mr. Mnuchin said the administration's proposal won't endorse the
border adjustment feature that is central to the House GOP plan.
The provision attempts to raise revenue by taxing imports, but not
exports. Mr. Mnuchin said the administration wasn't opposed to the
provision in concept and that he liked aspects of it. But he said,
"We don't think it works in its current form."
Mr. Ryan hasn't backed down on the border adjustment idea, but
he said Wednesday that he knows the proposal needs modifications in
response to criticism from retailers and others.
"We don't want to have severe disruptions," Mr. Ryan said.
Write to Richard Rubin at richard.rubin@wsj.com and Nick
Timiraos at nick.timiraos@wsj.com
(END) Dow Jones Newswires
April 26, 2017 09:42 ET (13:42 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.