It was Trump’s first visit to the department, which is located on the White House grounds.
But Trump – with his 100th day in office fast approaching – is scrambling to net some wins after a rocky start to his presidency, and is apparently going to attempt to take on both tax reform and health care reform simultaneously.
In February Trump ordered a review of the law, saying he wanted to cut out much of it, and Mnuchin has said he would like to look into how the council, which he chairs, works.
Supporters of the BAT argue that it would put the U.S.in line with most other developed countries that tax imports but not exports (the USA now does the reverse).
At the signing ceremony, Trump hinted at forthcoming details regarding his administration’s plans for overhauling the US tax code.
US Treasury Secretary Steven Mnuchin, when talking with reporters Friday, hinted at support for a replacement bill released this week by House Financial Services Committee Chairman Jeb Hensarling (R-TX), stating, “We are supportive of him bringing forward this legislation”. “I don’t think we decided that”, he said. “You can either have a small tax cut that’s permanent or a large tax cut that’s short term”.
Trump has previously set other dates for releasing news about his plan for tax reform, something financial markets have eagerly anticipated for some time. “Big TAX REFORM AND TAX REDUCTION will be announced this week” he tweeted Saturday morning.
If that is the case, it “is not tax reform”. Mnuchin said the administration remains committed to simplifying the taxes, reducing rates for middle class households and more competitive for businesses.
Treasury Secretary Mnuchin said in an interview Saturday that his department is now looking for reforms “that will pay for themselves with growth”-a clear sign that it is losing the battle to find offsets”. House GOP leaders are hoping he’ll endorse their so-called border adjustment tax, or BAT, which would impose a 20 percent tax on imports and eliminate export taxes. An analysis that doesn’t factor in economic growth forecasts is called a “static” assessment. “Under static scoring, there will be short-term issues”, Mnuchin said.
Factoring in the macroeconomic impact of tax cuts is controversial because it’s very hard to do.
Reports had indicated that the plan would include a carbon tax – an idea scorned by Republicans but favored by Democrats.
Mulvaney also raised the possibility that the plan might not be revenue-neutral – meaning that it might provide for only temporary tax cuts that would have to expire after 10 years.