Mnuchin: No Tax Reform By August, But Before 2017 Ends | NTK Network Mnuchin: No Tax Reform By August, But Before 2017 Ends

Mnuchin: No Tax Reform By August, But Before 2017 Ends

President Trump's Treasury secretary pushed the tax reform deadline to the end of 2017, only weeks after expressing confidence it would get done by August.

By NTK Staff | 04.18.2017 @7:00am
Mnuchin: No Tax Reform By August, But Before 2017 Ends

A day before Tax Day in the United States, Treasury Secretary Steve Mnuchin told the Financial Times (FT) that Americans will have to wait a little longer than expected for tax relief under the Trump administration.

Mnuchin told FT that the existing August deadline is “not realistic at this point,” due to the failure of the Trump-supported Obamacare repeal-and-replace effort.

More from FT‘s Sam Fleming, Demetri Sevastopulo, and Shawn Donnan:

Steven Mnuchin said the target to get tax reforms through Congress and on President Donald Trump’s desk before August was “highly aggressive to not realistic at this point”.

“It started as [an] aggressive timeline,” the former Goldman Sachs banker said in an interview with the Financial Times. “It is fair to say it is probably delayed a bit because of the healthcare.”

Mnuchin made sure to stress, though, that he still expects tax reform to pass in 2017. Although that gives the White House and Congress four more calendar months of wiggle room, the real wiggle room is closer to three months when one counts the week-long congressional break for Thanksgiving and the two-week break at the end of the year for the holidays.

One key sticking point in negotiations? The so-called “border adjustment tax” (BAT), which some Republicans support and some do not. The tax would raise $1 trillion over 10 years, and negotiators would have to find other sources of revenue in order to cut rates – if enough Republicans oppose the BAT.

Mnuchin told FT there are other ways to raise that $1 trillion, but did not appear to specify what options the administration will consider.

Also looming? What Axios reported over the weekend as the “candy option“: tax cuts for individuals and businesses, without raising tax dollars elsewhere to make up for the cuts.

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