Apr 26, 2017

Steve Mnuchin previews "largest tax reform" plan

Pablo Martinez Monsivais / AP

Treasury Secretary Steve Mnuchin said that President's Trump tax reform plan will be "the biggest tax cut and the largest tax reform in the history of our country," during an event hosted by The Hill on Wednesday. He also confirmed that the plan would include a 15 percent corporate tax rate.

Our thought bubble: Previous analyses estimated that the corporate tax cut (from 35 to 15 percent) would significantly increase the deficit. The administration has no real plan to pay for tax cuts beyond their belief that tax and regulatory reform will juice economic growth to 3 percent.

The details:

  • Mnuchin's comments suggested the administration doesn't support the "border adjustment" tax provision in its current form, which is one way they could pay for the 15 percent tax rate.
  • "We don't think it works in its current form and we're going to continue to have discussions with them about revisions," Mnuchin said.
  • The hike on import taxes, which would raise more than $1 trillion over 10 years, is the centerpiece of Paul Ryan's tax reform plan and the main way House Republican leadership plans to pay for massive tax cuts.
  • "The tax plan will pay for itself with economic growth," Mnuchin told reporters on Monday.
  • Mnuchin wants to make tax cuts permanent, but if they're not revenue neutral and can only be kept for 10 years (under budget rules) then that's better than nothing.
  • He's determined not to let the debt ceiling become a last-minute standoff crisis that would spook markets, but he wouldn't be drawn on congressional strategy to get it done.

Go deeper

Updated 26 mins ago - Politics & Policy

Biden: George Floyd's last words are "a wake-up call for our nation"

Former Vice President Joe Biden meets with clergy members and community activists during a visit to Bethel AME Church in Wilmington, Del. on June 1, 2020. Photo: JIM WATSON/AFP via Getty Images

Vice President Joe Biden is calling George Floyd’s dying words “a wake-up call for our nation,” and criticized President Trump’s decision to unleash tear gas on peaceful protesters outside the White House, in a civil rights speech from Philadelphia on Tuesday.

Why it matters: Biden in the address drew a sharp contrast between himself and Trump, whose first remarks addressing nationwide unrest Monday highlighted law and order, extreme demonstrations of militarized “strength” and other blustery threats.

Updated 34 mins ago - Politics & Policy

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Global: Total confirmed cases as of 11 a.m. ET: 6,302,318 — Total deaths: 376,322 — Total recoveries — 2,716,924Map.
  2. U.S.: Total confirmed cases as of 11 a.m. ET: 1,812,125 — Total deaths: 105,192 — Total recoveries: 458,231 — Total tested: 17,340,682Map.
  3. Public health: Protests against police brutality threaten coronavirus response.
  4. Business: Coronavirus could lower GDP by $15.7 trillion — More than 1 in 6 black workers lost jobs between February and April.
  5. Climate: The alarm over climate financial risk gets louder because of coronavirus.
  6. Media: Interest in the George Floyd protests has soared past the coronavirus.

The business of tear gas

Illustration: Eniola Odetunde/Axios

U.S. forces yesterday used tear gas on peaceful protesters outside the White House gates, prior to a declared curfew, clearing a path for President Trump to visit a riot-damaged church for a photo opportunity.

The state of play: Two of the largest U.S. producers of tear gas are owned by private equity firms, but those firms have no interest in discussing their ownership.