Trump to sign two financial executive orders on Friday

Andrew Cummings
April 21, 2017

Treasury Secretary Steven Mnuchin said earlier Thursday that the tax reform legislation will come "very soon".

"It will pay for itself with growth", he said of the tax plan which he expects to introduce before the end of the year.

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

The dollar and USA stocks rose after Mnuchin's comments, which come as the White House and congressional Republicans are at odds over whether to try for another vote on replacing Obamacare next week. But both measures have fierce opponents among businesses and Republican lawmakers. However, the Trump administration previously missed several of its deadlines for releasing its tax plan.

Mnuchin said United States corporate tax rates are among the highest in the world, and have caused companies to understandably park their earnings offshore.

"We're concerned about the impact on currency", he said at the Institute of International Finance conference.

Republicans believe major tax reform would drive annual USA economic growth above 3 percent.

"If the currency does correct in a much stronger currency, then that hurts our exports, if the currency doesn't correct we have price appreciation and inflation particularly in consumer goods, then that's a concern", he said.

"What's good for the U.S. economy is good for the global economy", Mnuchin said in a discussion at the Institute for International Finance.

"But the majority of it will be made up by what we believe is fundamentally growth and dynamic scoring", he added. He also said the White House's tax overhaul plan wouldn't increase the federal deficit. "It will be sweeping, it will be significant and it will create a lot of economic growth", he said.

Dynamic scoring is a little-known government forecasting method that uses economic modeling to predict changes in revenues resulting from economic growth spurred by new tax and economic policies. Mnuchin said Thursday that administration officials are looking at whether there should be four brackets instead of three.

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