Treasury’s Mnuchin concerned about alternate scoring models of Trump tax plan
U.S. Treasury Secretary Steven Mnuchin told lawmakers on Thursday that he has some doubts alternate scoring models will attribute enough economic growth when assessing the impact of the Trump administration’s tax plan.
“What I have said repeatedly is that any plan we put forward we believe should be paid for with economic growth,” Mnuchin 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.”
In late April, the Trump administration put out a one-page overview of its tax reform plans, which would cut taxes for businesses to 15 percent and simplify income tax brackets for individuals.
Mnuchin has said it was purposefully vague in order to allow the White House to more effectively work with lawmakers to come up with a joint agreement that could pass Congress.
How to pay for the tax cuts remains a sticking point. Fiscal conservatives in Congress would strongly prefer a revenue-neutral plan as they are against increasing deficits.
Mnuchin has said the cuts would pay for themselves under a dynamic scoring model analysis, which accounts for increased tax revenues that would be produced by higher growth prompted by the tax changes.
(Reporting by Lindsay Dunsmuir, Jason Lange and Pete Schroeder; Editing by Chizu Nomiyama)