U.S. President Donald Trump has said that he will announce the much awaited tax reform and tax reduction on the coming Wednesday. But they will disagree about how much growth will result, and therefore how much of the plan's revenue loss will be offset.
Mnuchin said that the tax plan would pay for itself when viewed through a "dynamic scoring" analysis, which accounts for the increased tax revenues that would be produced by higher growth prompted by the tax changes.
"Republican Treasury Secretary Hank Paulson conceived the Financial Stability Oversight Council as a forum for catching financial risks that fall through the cracks between the various regulatory agencies", said Public Citizen financial policy advocate Bartlett Naylor on Friday.
-Reasonable dynamic scores show a range of impacts, none of which pay for their tax cuts. Just when the wholesale overhaul of the tax code will occur is anyone's guess because other priorities, like revamping the health insurance law, appear to be crowding it out.
"We're going to be putting that out on Wednesday or shortly thereafter", Trump told the AP.
Mnuchin told journalists on Friday that rules enacted by Obama's Treasury Department, meant to reduce corporate tax avoidance specifically through the process of tax inversions, would be among those targeted under Trump's order. They also have recent real-world examples to make their case: Tax cuts in Kansas made by Gov. Sam Brownback failed to deliver the expected boost, forcing the state into years of grueling budget battles and harsh spending cuts to make up the gap.
White House officials have said there are several basic principles to their tax plan.
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.
President Trump signed the memos at the US Treasury Department, but his administration has not released the overall strategy he envisions.
The White House will release a broad overview of its tax reform plan as early as Wednesday, according to administration officials.
Mr. Trump hasn't definitively embraced the plan, and GOP Rep. Marsha Blackburn, who has been a relatively reliable ally of the president, said on the network Monday she doesn't expect to see it in the White House package this week.
Tax reform, of course, is one of the two big drivers of business optimism sparked by Trump's election-the other being deregulation.
Members of Trump's team of economic advisers are set to meet with Republican leaders in Congress Tuesday to discuss the plan.
In an executive order, Trump has asked the Treasury Department to review all tax regulations put in place since past year to determine if they pose any undue financial burdens to taxpayers, are overly complex or are unnecessary. While a president can work to spearhead an agenda and whip lawmakers behind their cause, Trump will be at the mercy of lawmakers as far as tax reform is concerned.
No one disagrees with the Trump administration's basic premise that tax cuts can stimulate growth.