This. Could. Be. HUGE.
President Trump’s Treasury Secretary, Steve Mnuchin, broke some big news during a speech to the Washington forum on Wednesday afternoon. Mnuchin told the audience that the Trump administration would soon be proposing, and then hopefully passing, the “biggest tax cut” and “largest tax reform” in American history.
Treasury Secretary Steve Mnuchin confirmed Wednesday that the Trump administration aims to lower business tax rates to 15 percent, saying a forthcoming proposal will constitute the “biggest tax cut” for Americans in history.
“This is going to be the biggest tax cut and the largest tax reform in the history of our country,” Mnuchin said, as administration officials prepare to outline Wednesday afternoon what he described as “principles” of their tax plan.
Mnuchin, speaking at a Washington forum, would not reveal many specifics but confirmed that they want to lower the business rate to 15 percent.
“I will confirm that the business tax is going to be 15 percent,” he said. “[Trump] thinks that’s absolutely critical to drive growth.”
He indicated that the rate for small businesses and the corporate tax would both drop to 15 percent. The top small business rate is 39.6 percent; the current corporate tax is 35 percent.
Mnuchin also said the administration wants to “do the whole thing,” and not pursue tax reform piece by piece.
While there are concerns that such a large package would hurt government “revenue,” Mnuchin did not seem concerned by the possibility. He argued that economic growth would more than cover the possible shortfalls. Sadly, such a response (while probably right) won’t help the administration get the tax cuts (and reform) passed the Democrat minority, particularly in the Senate.
Speaker of the House Paul Ryan (R-WI) agreed with Mnuching that growth would increase exponentially if the GOP reforms are passed.
Larry Kudlow explained on CNBC that the tax cuts would pay for themselves.
Earlier in the day, the Nasdaq seemed to presage Mnuchin’s comments as it soared past 6K for the first time. Ever.