Treasury Secretary Steven Mnuchin asserted Thursday that the Trump administration is unified in seeking a tax reform that is more than just mere tax cuts, and that the legislation should be paid for.
In an interview on Fox Business from the Rose Garden immediately following President Trump's Paris climate accord withdrawal, Mnuchin said that he and Office of Management and Budget director Mick Mulvaney were in agreement, even though the two of them had appeared to give conflicting statements on the administration's tax plans during congressional hearings last week.
"We're going to make sure this is tax reform, not just tax cuts, and that they're paid for," Mnuchin said.
"Mick is onboard, and we've discussed," he later added.
Mnuchin explained that the administration's plan was to assess the tax plan using "dynamic analysis," meaning that it will count on new revenues generated by faster economic growth resulting from the lower rates. This analysis would support their argument that overall tax revenues will not go down.
People who would use a "static analysis," meaning that there is no assumption of faster growth from tax reform, "I think are living in the stone ages," Mnuchin said.
Last week, the administration stirred up some confusion about its intentions for its tax reform's effects on revenues. During testimony on Capitol Hill, Mulvaney said that the plan would pay for itself in a static analysis. On Wednesday, however, he told the Washington Examiner that that assumption was only meant for the budget document, and was not indicative of the administration's actual plans.
The White House has also drawn persistent questions about whether Trump wants comprehensive tax reform or merely tax cuts, which may be temporary. Although Mnuchin said Thursday that the goal was tax reform, Trump called for "tax cuts" in a tweet sent Tuesday.