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Trump says he will release tax reform package next week

Trump says he will release tax reform package next week

President Donald Trump on Friday will order the U.S. Treasury Department to review Obama-era rules written to discourage U.S. companies from moving their headquarters overseas to cut their tax bills, Treasury Secretary Steven Mnuchin said.

Treasury Secretary Steven Mnuchin sent US stock prices to a daytime high Thursday when he said the Trump administration will produce an ambitious plan to overhaul the USA tax code "soon".

During a conference Thursday sponsored by the Institute of International Finance, both Mnuchin and Gary Cohn, President Donald Trump's top economic adviser, raised expectations for significant tax legislation before the end of 2017.

The dollar and USA stocks rose after Mnuchin's comments, which came as the White House and congressional Republicans are at odds over whether to try for another vote on replacing the 2010 Affordable Care Act, known as Obamacare, next week.

"It's such a big thing", said Trump.

Cohn said that the White House tax plan would include both changes to both the individual and corporate tax systems. "But the majority will fundamentally come from growth and dynamic scoring".

"It's about making business taxes competitive and bringing back what we think will be trillions of dollars to invest", he said.

The treasury secretary said any revived attempt by the administration to overhaul health care would not stand in the way of completing tax reform this year.

One thing that is generally agreed upon, by numerous people tracking tax reform, is that the White House will have to be the driving force behind a tax overhaul.

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. He has also said he wants to create some sort of "reciprocity" tax that imposes a tariff-like tax on imports from countries that have tariffs against the United States. The process can be controversial, in that economists use differing models to gauge such outcomes.

"Any actions to undermine these protections encourage Wall Street's risky behavior and leave taxpayers and our economy exposed to another catastrophe", Brown said.

Asked whether a huge tax cut would enlarge the U.S. budget deficit, Mnuchin acknowledged there would be an impact but said it will balance out once the positive growth anticipated from the increased investment is factored in, a calculation method known as "dynamic scoring".

Mnuchin's remarks to reporters in Washington helped renew investor enthusiasm that the administration will not find itself bogged down by the fight over repealing and replacing Obamacare.


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