02/23/2017

Mnuchin Aims for Tax Reform by August Recess

Specific prescriptions for tax reform will be delivered before the summer break

Administration officials offered assurances this week that the White House will deliver specific prescriptions for tax reform before the summer.

While President Trump has yet to fully endorse congressional Republicans’ blueprint for overhauling the tax code, Vice President Pence said this week that the White House will deliver on tax reform after an agreement is reached on repealing and replacing the Affordable Care Act (ACA).

“Rest assured, when President Trump and I get done, before we get to this summertime, we’re going to cut taxes across the board for working families, small businesses and family farms, and get this economy moving again,” Pence said in a speech Feb. 22.

Treasury Secretary Steven Mnuchin earlier today weighed in on the issue too, saying his goal is to get tax reform legislation enacted by the time Congress leaves for its August recess.

“It will be very significant,” Mnuchin said on CNBC. “It’s going to be focused on middle-income tax cuts, simplification and making the business tax competitive with the rest of the world.”

House Republicans have been working on a tax reform bill based on a blueprint they released last year. A key part of that plan is border adjustability, which essentially taxes imports and exempts exports. That concept is crucial to ensuring that the Republicans’ plan is revenue-neutral but faces opposition from retailers and other industries as well as some lawmakers.

Mnuchin said the border adjustability concept has some “interesting aspects,” but raises some concerns as well. He said the administration will work with Congress to achieve a “combined plan that is the administration’s plan, with the support of the House and the Senate.”

This article was provided to OSAE by The Power of A.