Treasury Secretary Steven Mnuchin revealed details of the Trump administration’s tax plan on the FOX Business Network nearly a week after it was initially unveiled alongside Gary Cohn, director of Trump’s National Economic Council.
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Mnuchin says the tax plan has been in the works for a while, telling the FOX Business Network’s Maria Bartiromo, “We’ve been working on tax since the president was elected. I think as you know, I worked on the tax plan and the economic plan with him during the campaign.”
Though the administration is taking the lead on tax reform, it has been a very cooperative effort, according to Mnuchin.
“We’ve been working closely and meeting every week with the House and the Senate and we’ll continue to do that. We are all committed to get this done.”
Mnuchin explained to Bartiromo that there are three components to the administration’s economic plan: tax reform, regulatory reform and trade.
The Treasury Secretary noted that making the U.S. corporate tax rate more competitive was a key component of the tax reform plan.
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“We have one of the highest corporate business rates in the world, we have a concept of worldwide taxing and deferrals and we’re going to change all that, we’re going to make U.S. business competitive.”
On the other hand, Mnuchin said it was important to the U.S. economy to create a tax reform plan that not only benefitted large corporations but small businesses as well.
“It’s about the business rate, not the corporate rate. This isn’t just about creating savings for large corporations, it’s about creating savings for small- and medium-sized businesses that are really the earnings power of this country.”
Under the administration’s tax plan, Mnuchin says most taxpayers will have a much simpler tax return, telling Bartiromo: “For most Americans, they’ll be able to fill out their taxes on a large postcard and will use the standard deductions.” For wealthy Americans, he adds, the plan will rein in many special deductions.
A reciprocal tax is still a potential option, Mnuchin explained, as part of the administration’s effort to achieve fair trade.
“The president has talked about a reciprocal tax and that’s one of the many things we are looking at, but again, it’s about fair trade.”
When Bartiromo asked if a border adjustment tax was off the table, Mnuchin responded, “In its current form, it doesn’t work.”