Trump signs executive orders on financial regulations
00:00, Nov 30, -0001
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White House Office of Management and Budget Director Mick Mulvaney.
Mnuchin on Thursday said economic growth from proposed tax cuts would come close to $2 trillion over 10 years.
On Saturday, administration officials offered confusing signals on which route Trump would pursue, The Washington Post reported.
"I think he's recognized that if he doesn't get this economy moving in a way that people visibly feel it, he and the Republicans are going to be in deep trouble next year", Forbes said. "Tax reform is way too complicated", he said. "You can either have a small tax cut that's permanent or a large tax cut that's short term". He argues it is too onerous on lenders, making it hard for American businesses - like his Trump Organization - to get credit.
Trump is slated to describe his principles for tax reform on Wednesday.
Next week promises to be a busy week for Congress and the White House as Mr. Trump's first 100 days in office draw to a close.
Under US law, only congress can make significant tax law changes, though the president often drives the tax agenda by offering legislation. Earlier in the day, when reporters asked Steven Mnuchin, the Treasury secretary, how far away a tax overhaul proposal was, he said he could not give an answer. And, now, a White House tax reform plan.
President Donald Trump's tax plan will probably look similar to what he espoused on the campaign trail, Grover Norquist, the president and founder of Americans for Tax Reform, told CNBC on Friday.
Mnuchin said for the first time on Friday that the White House supported the House Republican effort but suggested it would not impede the multiple reviews that the White House has now launched on its own.
"This idea that [Trump's plan] can be paid for even mostly by growth doesn't equate with any economic analysis or theory".
The Federal Reserve could raise short-term interest rates, investors might charge the government higher borrowing costs and a stronger dollar could temper growth through exports, said Mark Doms, a senior economist at the bank Nomura.
Factoring in the macroeconomic impact of tax cuts is controversial because it's very hard to do.
Trump and Republicans in Congress view tax reform as the best vehicle for eliminating what they say are tax incentives for US companies to move their headquarters, manufacturing facilities and jobs overseas.
The deficit impact of tax cuts is vitally important because any plan that grows the deficit over the long term is much more hard to pass through Congress.
A House Republican tax plan endorsed by House Speaker Paul D. Ryan, R-Wis., for example, would raise almost US$1 trillion by imposing a new tax on imports, frequently referred to as a border-adjustment tax. During the campaign, he backed cutting the corporate tax rate and the personal income tax rate to 33 percent from a top marginal rate of 39.6 percent.
"Fifteen percent isn't deficit-neutral", Ryan said. They also want to encourage USA companies to move money back into the United States.
The second involves a 180-day review of the Financial Stability Oversight Council, which has the authority to set aside certain financial regulations written by the Consumer Financial Protection Bureau.