Mnuchin Admits 15 Percent Corporate Rate Unlikely

Posted September 13, 2017

Mnuchin did not give an exact number but rather emphasized that getting tax reform done is much more important.

In an interview with CNBC, Mnuchin also said the administration would "absolutely" consider making the tax cuts effective back to the start of this year if a measure didn't pass until 2018.

Trump campaigned on the promise of cutting the corporate tax rate to 15%, but Mr Mnuchin said that the goal would be hard to achieve.

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Trump vowed to reduce the corporate tax to 15 percent to attract more companies to do business in the United States.

"If you earn money that's clearly income, if you're an accountant firm and that's clearly income, you'll be taxed at income rates-you won't be taxed at pass-through rates", Mnuchin said.

"The president's been very clear that hedge funds will not have the benefit of carried interest", he said.

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The Treasury secretary said the administration still wanted the carried interest break to be available to "other entities that create jobs". The White House is wary of relying exclusively on Republican support for the legislation after seeing the health care bill collapse and is genuinely seeking Democratic support, Short said. The president has been pushing for changes to the tax code to cut corporate and individual rates and simplify the system.

Reports from inside the Oval Office also indicated that the Republicans would be willing to use the process of reconciliation, wherein a simple majority vote in both the House and the Senate would be sufficient to allow for expedited passage of certain budgetary legislation, if the tax reform bill was unable to garner the 60 votes it required to be ratified.

Treasury Secretary Steven Mnuchin amped up expectations of tax reform before the year is out on Tuesday morning, even bringing up the possibility of backdating changes to January 1. "Passing tax reform, which hasn't been done in 31 years, that's a win. The president wants to increase military spending and that's something he is going to demand for December".

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