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Treasury Secretary Address Future of the GSEs, Promises Economic Growth

Steven Mnuchin

Steven Mnuchin

The recently confirmed Secretary of the Treasury, Steven Mnuchin, today announced his ambitious goals for a U.S. tax-code overhaul by August. He also wants to deliver economic growth at rates not seen in more than a decade, according to the Wall Street Journal. He said that the slower economic growth since the financial crisis had primarily been an anomaly and a result of Obama administration policies that can be reversed

In his first television interview since assuming office, he told CNBC that "We want to get this done by the August recess. We've been working closely with the leadership in the House and the Senate, and we're looking at a combined plan.” However, experts believe that this is unrealistic considering the fact that lawmakers already have a complex agenda to deal with.

President Donald Trump has repeatedly made promises for tax reform and regulatory cuts since he took office without giving many details. Mnuchin said the administration is "primarily focused on a middle income tax cut and a simplification for business." He reiterated what he told CNBC in November that he is focused on any tax cuts for the wealthy being canceled out with closed loopholes.

The new Treasury Secretary said the administration still aims for "sustainable growth of 3 percent or more." He said he expects to hit that mark more toward the end of next year.

Mnuchin said the tax plan should not necessarily be judged by how much the United States tax revenue drops but by how much economic growth the reform could create. Critics on both sides of the aisle have raised concerns that the plan would not be revenue neutral, meaning that any tax cuts are canceled out by closing existing loopholes.

Steven Mnuchin was confirmed as Treasury Secretary on February 13.

During Mnuchin’s confirmation hearing, Senate Finance Committee Chairman Orrin Hatch (R-Utah) went to bat for him, saying claims that his businesses helped precipitate the 2008 financial crisis were “lacking in merit.” Mnuchin, 54, is a hedge fund manager, former Goldman Sachs partner, and former executive with IndyMac and OneWest Banks.

When nominated for Treasury Secretary in November, Mnuchin said at that time that he would end the government’s controversial conservatorship of Fannie Mae and Freddie Mac. “We will make sure that when they are restructured, they are absolutely safe and don’t get taken over again. But we’ve got to get them out of government control,” according to Bloomberg.

In addition, Mnuchin has also said he would roll back key provisions of the Dodd-Frank Act, signed into law by President Barack Obama in 2010 to regulate Wall Street.

About Author: Sandra Lane

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