Treasury Secretary Steven Mnuchin said the Trump administration wouldn’t support tax legislation with a corporate tax rate of more than 20 percent, as a possible compromise between the House and the Senate, The Wall Street Journal reports.
In an interview at The Wall Street Journal CEO Council gathering on Monday, Mnuchin ruled out any increase in the corporate tax rate to above 20 percent. “It’s not going up. I can tell you this is one of the things the president feels very strongly about,” the Treasury Secretary noted.
Last week the Senate Republicans proposed to overhaul the tax code, The Journal adds. Both bills would reduce the corporate tax rate to 20 from 35 percent, but the Senate proposal would delay the rate cut until 2019, forgo a repeal of the estate tax and eliminate the entire state and local tax deduction. According to the Journal, compared with the House bill, those changes freed up hundreds of billions of dollars that enabled senators to avoid tough and politically painful choices.
Mnuchin stressed that the Treasury Department believes the plan, which congressional analysts estimate would cost $1.4 trillion over 10 years, would ultimately make up the lost revenue through stronger economic growth. He also promised “complete transparency” in showing how the plan would deliver stronger growth.