Finance

President Trump To Announce Tax Cuts

| by Jordan Smith
Donald TrumpDonald Trump

President Donald Trump announced April 21 that he intends to unveil his tax cutting plan April 26.

Trump said in an interview with the Associated Press that cuts to corporate and personal taxes would be "bigger I believe than any tax cut ever," according to CNBC.

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Tax reform was one of Trump's major election promises.

"We'll be having a big announcement on Wednesday having to do with tax reform. The process has begun long ago, but it really formally begins on Wednesday," Trump added.

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The date will be just prior to the end of Trump's first 100 days in office.

The president did not provide any details about the coming measure, but noted that it would contain a "massive tax cut" for individuals and businesses.

Stocks on the Dow Jones rebounded from earlier losses, but later fell back after the White House issued a statement suggesting the timeline for implementing the proposed cuts had not yet been solidified. 

"The President was saying what we've been saying all along, that he wants to do tax reform as quickly as possible while still doing it right," the statement read.

Trump's remarks came just days after Treasury Secretary Stephen Mnuchin appeared to suggest that the tax cuts may not be enforced immediately.

"It started as [an] aggressive timeline," Mnuchin said of the tax reform, CNBC reported. "It is fair to say it is probably delayed a bit because of the health care," he continued, referring to the failed attempt by Republicans in March to reform the Affordable Care Act, known commonly as "Obamacare."

The treasury secretary emphasized, however, that he does anticipate the tax system will be changed in 2017.

The administration he explained, would ensure that tax cuts were deficit neutral by encouraging economic growth, and argued that the difference in revenue between what would be generated by 1.8 percent growth and 3 percent growth was "staggering." Mnuchin forecasted the economy could grow by an additional $2 trillion over the coming decade.

Mnuchin also noted that the proposal for a border adjustment tax, which would tax imports to the U.S. and exempt exports, was still under consideration by officials at the Treasury. Senior Trump administration officials, however, indicated that the border adjustment plan is not likely to survive.

Debate continues over whether tax cuts will indeed pay for themselves by encouraging growth. According to MSNBC, both Republican Rep. and House Speaker Paul Ryan of Wisconsin and Director of the Congressional Budget Office Mick Mulvaney have both publically disagreed with the idea, according to MSNBC.

Sources: CNBC, (2), MSNBC / Photo credit: D. Myles Cullen/Wikimedia Commons

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