Published: Mon, May 01, 2017
Global Media | By Abel Hampton

Trump eyes changes to Obama's tax and Wall Street rules

The market didn't make a big move on Friday on the news that Trump was going to be releasing his tax plan on Wednesday. "We want to create a system where the average American can file a tax code on a big postcard", Mnuchin said.

President Donald Trump plans to propose massive tax cuts for businesses big and small as part of an overhaul that he says will provide the biggest tax cuts in us history.

Earlier in the day, when reporters asked Steven Mnuchin, the Treasury secretary, how far away a tax overhaul proposal was, he said he could not give an answer.

Mnuchin on Thursday said economic growth from proposed tax cuts would come close to $2 trillion over 10 years.

Mnuchin said he hopes there will be bipartisan support for the plan, but should they fail to reach a consensus with Democrats, the White House will consider using the reconciliation process to finalize tax reform.

"There is no evidence that broad-based tax cuts can pay for themselves completely, and economic studies from across the spectrum have found that deficit-financed tax cuts only pay for a fraction of their cost", the CFRB said in a blog post.

But he also said that if these macroeconomic changes aren't factored in, the tax plan would grow the deficit. But most people approve of his efforts to encourage United States companies to stay in the U.S., while those who say the economy is improving are outnumbering, by the biggest margin in 15 years, those who say it's getting worse.

"Taking actions which remove the changes that were made to strengthen the structure of the financial system is very unsafe", Fischer said.

Mnuchin and National Economic Council Director Gary Cohn are set to meet with top Republican lawmakers Wednesday to discuss the administration's tax plan.

He also said they have not decided whether to offset the rate cuts with other changes that would reduce the budget deficit. "You can either have a small tax cut that's permanent or a large tax cut that is short-term". Trump now appears not to be wedded to either his campaign plan or Ryan's plan. Like George W. Bush before him, Trump will likely find it prohibitively hard to pass deeply unpopular tax cuts for the rich, while also pushing through deeply unpopular spending cuts and/or middle-class tax increases.

If any candidate fails to release their tax returns, both they and their running mate would be disqualified from being on the official ballot.

"We are poised, but we are in a geopolitical world, some type of event could happen, but I think we are positioned well", he said in response to a question from Lagarde at the conversion held on the sidelines of the annual Spring Meeting of the International Monetary Fund and the World Bank.

Putting a finer point on it, "if they want to assume 3% to 4% growth, the plan may pay for itself on paper".

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