On Friday morning, US Treasury Secretary Steven Mnuchin defended the administration’s commitment to implementing American tax reform. Mnuchin declared that he is looking to have a bill for the president to sign by the beginning of December. Any significant restructuring of the tax code is proving difficult. The last major overhaul was in 1986.
Mnuchin’s hope lies in the ability of Senate to advance a budget that sets the parameters for a tax bill and establishes a procedure to approve it by a majority vote. One of the main arguments is that the tax cuts for companies would be an essential part of the plan to help middle-class families.
Some of the reasons for implementing tax reform would be to promote wage and job growth. Mnuchin also highlighted the effect of the existing tax structure, encouraging large corporations to redirect profits offshore. Furthermore, Mnuchin commented on prospects for reform of the financial regulatory framework put in place during the crisis of 2008. Banking-sector reforms could be done on a regulatory basis, without having to pass new legislation.
“The aim is to bring back foreign earnings and invest them domestically, making our system more competitive for American jobs” said Keith Knutsson of Integrale Advisors.
In addition, Steven Mnuchin is currently a strong candidate for the position of Federal Reserve Chair, following the conclusion of Janet Yellen’s term. If he is to be chosen, investors would be looking at another few quarters of profitability backed by a pro-business administration, at least until midterm elections in 2018.
This article originally appeared on my blog Here.
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