Finance

President Trump To Announce Tax Cuts

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

Trump said in an interview with AP 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 that was less clear on the timeline for implementing the proposed cuts.

"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 quickly.

"It started as [an] aggressive timeline," Mnuchin said of tax reform, CNBC (2) reported. "It is fair to say it is probably delayed a bit because of the healthcare."

Mnuchin was referring to the failed attempt by Republicans to reform Obamacare in March.

However, Mnuchin emphasized that he anticipates the tax system will be changed in 2017.

He added that the administration would ensure that tax cuts were deficit neutral by encouraging economic growth. He argued that the difference in revenue that would be brought in by growth of 1.8 percent or growth of 3 percent was "staggering." He said that the economy could grow by an additional $2 trillion over the coming decade.

Mnuchin noted that the proposal for a border adjustment tax, which would tax imports to the United States and exempt exports, was still being considered by officials at the Treasury. However, senior Trump administration officials indicated that the border adjustment plan is not likely to survive.

Some disagreement exists over the suggestion that the tax cuts will pay for themselves by encouraging growth. According to MSNBC, both House Speaker Paul Ryan and Mick Mulvaney, the head of the Congressional Budget Office, have previously stated their opposition to the idea that tax cuts produce enough growth to pay for themselves.

Sources: CNBC, (2), MSNBC/ photo credit: D. myles Cullen/Wikimedia Commons

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