Trump Administration Keeping Powder Dry on Chinese Currency Issues

Andrew Cummings
February 25, 2017

There hasn't been tax reform on the scale that President Trump is proposing in 30 years, and that was only passed in the second term of the Reagan administration.

"Our economic agenda, the No. 1 issue is growth, and the first most important thing that will impact growth is a tax plan", Mnuchin said in an interview with CNBC.

In his first television interview since assuming office, he told CNBC that "We want to get this done by the August recess".

Mnuchin signalled that the Trump administration is aiming for the United States economy to achieve an annual growth rate of 3 per cent or higher, arguing that the tepid economic growth seen since the financial crisis had been an aberration caused by the Obama administration's policies.

He added that the Trump administration is "primarily focused on a middle income tax cut and a simplification for business".

"It's not that we want to go back to proprietary trading, but we want clarity", he said.

When it comes to rolling back regulations, Treasury Secretary Steven Mnuchin told the FOX Business Network's Maria Bartiromo that his main concern is to make sure that US banks are lending.

Some Republican senators have criticized a House Republican plan to levy a 20 percent tax on imports aimed at encouraging more US production and exports and raising $1 trillion in revenue over a decade to offset lower business tax rates.

Acknowledging anxiety among USA companies heavily reliant on imports, Mnuchin admitted that "there are some concerns", but that "we're looking at" a border-adjustment tax.

The tax plan of Republican House leaders includes the border adjustment tax, which could be a major source of tax revenue. "We think it's absolutely critical to getting to economic growth".

Share markets have jumped since the November presidential election in what has been dubbed the "Trump rally".

He said that under Mr Trump, the government aims to sustain growth of 3 per cent or higher annually. The Senate still has not confirmed Trump's nominees for Commerce secretary and the U.S. Trade Representative, and the president has yet to make numerous mid-level nominations at all three departments. EXIM has been restricted in its ability to lend because its board is not at full strength.

Other reports by iNewsToday