Treasury Secretary Steven Mnuchin said the Trump administration won’t support tax reform that has a corporate tax rate of more than 20 percent in a compromise between House and Senate lawmakers.
“It’s not going up,” he said at conference hosted by The Wall Street Journal. “I can tell you this is one of the things the president feels very strongly about.”
Senate Republicans last week released their proposed tax overhaul that differs from the House plan. While both bills would cut the corporate tax rate to 20 percent from 35 percent, the Senate bill would delay the reduction until 2019, eliminate state and local tax deductions and forgo a repeal of the estate tax.
Mnuchin said the Treasury Department believes the plan would ultimately make up lost revenue, estimated by congressional analyst at $1.4 trillion over 10 years, with stronger economic growth that would boost the tax base.
“The good news is both the House and Senate bill have the absolute same objectives,” Mnuchin said the day before in an interview on CBS News’ “Face The Nation.”
“One of the things that's very important is, even if they don't kick in, expensing will kick in right away, so companies will be able to take advantage of expensing at a higher tax rate,” he said.
Mnuchin also dismissed worries that tax cuts would be adding to the debt and deficit, but conceded “the president is concerned about the debt.”
“But our number-one focus right now is on growth,” he said. “If we can create 3 percent or higher sustained economic growth, that's over $2.5 trillion of additional revenue to the government, $10 trillion of additional revenue to the economy. And that's what's critical to the American public.”
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