Trump says he will release tax reform package next week

U.S. President Donald Trump's tax reform plan will rely largely on future revenue gains from faster economic growth to justify major tax cuts, top Trump advisers said on Thursday.

Friday's actions are part of broader administration efforts to dismantle the 2010 Dodd-Frank law and come alongside steps by congressional Republicans to do the same.

One thing that is generally agreed upon, by numerous people tracking tax reform, is that the White House will have to be the driving force behind a tax overhaul.

Asked if that would include rules against tax-driven foreign corporate deals known as inversions, Mnuchin said: "It's one of the significant things and one of the things we would be looking at".

Asian shares mostly gained on Friday while monitoring events following a suspected terrorist shooting in Paris days ahead of presidential polls in France as comments overnight on USA tax policy lifted overall sentiment.


Earlier in the week, Mnuchin had backed off his vow to get tax reform through the Congress by the summer break that lawmakers take in August - his latest prediction is just a few months after that, at the end of the year.

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

Neither senior official offered specific details of what the administration's plan might look like.

The US official said the administration's key focus is around fair and balanced trade and investment, but he steered clear of the tensions among finance officials gathered for the semi-annual meeting of the International Monetary Fund due to the worrisome protectionist rhetoric out of Washington. "We're working with all of the different levers". But he added that Trump's order on tax reform, specifically, is "much more symbolic, rather than substantive, because it's asking for a report". What commonly happens in earnings stripping is that corporations make inter-company loans where the debtor is the US company and the creditor a foreign parent. "If you want to insist on having a tariff on our product, the president believes we should treat you in a reciprocal fashion". Trump now appears not to be wedded to either his campaign plan or Ryan's plan.

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. In an interview with the Associated Press, Trump said businesses and individuals would receive a "massive tax cut" under his blueprint, set to be issued next Wednesday or "shortly thereafter". Trump's order directs Mnuchin to determine if the authority could lead to costs for the Treasury, and hence to taxpayers.


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