Published: Sat, April 29, 2017
Markets | By Erika Turner

Trump says he will release tax reform package next week

Trump says he will release tax reform package next week

"We're going to be putting that out on Wednesday or shortly thereafter", Trump told the AP.

Despite the timeline from Trump, statements from various administration officials have analysts questioning how detailed the plan will be.

Critics say the review is aimed at revoking Obama-era reforms that have brought stability and transparency to the sometimes murky world of high finance, and helped to prevent another crisis.

As Trump's freakish presidency nears the 100 days in office milestone, he still has not released his own personal tax returns, or any details on his own vast family business of global holdings and shell companies.

"We're looking for reforms that will pay for themselves with growth", Mnuchin said.

"This is really the beginning of a whole new way of life that this country hasn't seen in really many, many years", the president said before signing the measures during his first visit to the Department of the Treasury. It would take a number of Democrats to support any tax plan that grows the deficit in the long run because Republicans only have 52 seats in the Senate. He has signed a series of executive orders, including on tax simplification, aimed at reviving the economy and bring jobs back to the United States, fast tracking the implementation of his election promises before the first 100 days in office.

Treasury Secretary Steven Mnuchin said a "significant" issue to be examined will be the crackdown by Obama on inversions, which are mergers that enable US firms to relocate their headquarters overseas where tax rates are lower. "We're here today to continue this great economic revival", he said as he signed three presidential directives to further protect American workers and taxpayers.

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He also said that Washington believes in "free and fair" trade, adding Trump wants "reciprocal trade deals and reciprocal free trade". "I think everybody would agree the tax system is way too complicated".

He said Monday that Trump is "very determined" that the USA can achieve sustained economic growth of 3 percent or greater, which would pay for the tax cuts along with "trillions of dollars" brought in from offshore havens. Since taking office, the president has suggested that he wants to enact the deepest cuts to individual and corporate tax rates in history.

The President said that he will also open up lending to small businesses.

Mnuchin has worked on the tax plan for months, but details have remained fluid, with White House officials considering a range of options in how they restructure the tax code. The plan will also include child-care benefits, a cause promoted by Trump's daughter Ivanka.

During the campaign, Trump proposed to reduce the corporate tax rate from 35 percent to 15 percent.

Any tax reform needs to be passed by Congress but, despite Republicans controlling both Houses, the party is divided on some key issues, particularly the idea of a border adjustment tax which would levy imports and be a big revenue-generator.

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