Trumps tax reform plan to produce some short-term budget issues: US Treasury Secretary
Were looking for reforms that will pay for themselves with growth, Mnuchin said. Under dynamic scoring, this will pay for itself, under static scoring, therell be short term issues.
US Treasury Secretary Steven Mnuchin said on Saturday that the Trump administration's tax reform plan would produce some "short term issues" when viewed under traditional "static" budget analysis rules.
His comments during an interview by International Monetary Fund Managing Director Christine Lagarde suggested that the plan would not be revenue-neutral and would increase deficits in the short term.
Mnuchin said that the tax plan would pay for itself when viewed through a "dynamic scoring" analysis, which accounts for the increased tax revenues that would be produced by higher growth prompted by the tax changes.
"We're looking for reforms that will pay for themselves with growth," Mnuchin said. "Under dynamic scoring, this will pay for itself, under static scoring, there'll be short term issues."
Mnuchin also said the tax plan would be aimed at helping the middle class to "get more money in their pockets" and would be much simpler.
"The tax code is way, way, way too complicated. We want to create a system where the average American can file a tax code on a big postcard," Mnuchin said.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.