You are here: Home » Reuters » News
Business Standard

Treasury's Mnuchin concerned about alternate scoring models of Trump tax plan

Reuters  |  WASHINGTON 

By Lindsay Dunsmuir

(Reuters) - U.S. Treasury Secretary Steven told lawmakers on Thursday that he has some doubts that what are known as alternate scoring models will give enough credit to the potential for economic growth when assessing the impact of the Trump administration's plan.

In late April, the administration put out a one-page overview of its reform plans, which would cut taxes for businesses to 15 percent, as well as cutting taxes and simplifying brackets for individuals. Critics questioned how the cuts would be offset without driving up the federal deficit.

"What I have said repeatedly is that any plan we put forward we believe should be paid for with economic growth," told the Senate Banking Committee. "I am concerned as to whether some of the models will attribute enough growth in dynamic scoring but when we present the details we will present how we think it should be paid for."

has said the April plan was deliberately vague in order to allow the White House to more effectively work with lawmakers to come up with a joint agreement that could pass

How to pay for the cuts remains a sticking point. Fiscal conservatives in the Republican-controlled would strongly prefer a revenue-neutral plan as they are against increasing deficits.

has said the cuts would pay for themselves under a dynamic scoring model analysis, which takes into account the effect of changes on economic growth and revenue.

At Thursday's hearing, was also peppered by Democrats on the committee about details of the plan, including whether or not cuts would mostly benefit the wealthy.

"I can assure you the president's objective and my objective is we create a middle cut and we do not raise taxes on the middle income, if anything the opposite," said.

He added that the plan would get rid of almost every single deduction, which he said were disproportionately used by the wealthy and that the aim was that 95 percent of Americans would no longer need to itemize deductions.

Later on Thursday at a U.S. Chamber of Commerce event, the Treasury secretary insisted that reforms remain on track despite growing doubts among investors on the size and scope of any cuts achievable in

A renewed push on a repeal of Obamacare is currently being worked on in the Senate while reports that President Donald Trump may have tried to interfere with a federal investigation has shifted focus away from the congressional agenda.

"I am still very hopeful that we'll get reform done this year," said.

(Reporting by Lindsay Dunsmuir; Editing by Frances Kerry and Andrea Ricci)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)