US pursues 3% growth via tax reforms, regulatory relief

The Trump administration is pursuing over 3 per cent economic growth with the support of tax reforms and regulatory relief, US Treasury Secretary Steven Mnuchin has said.

"The US economy is well positioned," Xinhua news agency quoted Mnuchin as saying on Saturday during a conversation with Christine Lagarde, managing director of the International Monetary Fund (IMF).

He called the IMF's forecast for US growth "a little conservative", saying that the country's economy could grow by 3 per cent or higher with the support of tax reforms and regulatory relief.

The IMF forecast the US economy to grow by 2.3 per cent this year and 2.5 per cent next year.

Mnuchin reiterated that President Donald Trump administration was planning to bring the high corporate tax rates down and simplify tax codes for individuals.

Trump on Friday said the administration was going to release its tax plan next week.

Mnuchin suggested that the tax plan would not be revenue-neutral. "We're looking for reforms that will pay for themselves with growth."

He skipped questions about whether regulatory relief could affect financial stability, saying that the administration is trying to reduce conflicting regulations that hurt economic growth.

--IANS

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