President Trump's tax reform plan is coming "very soon," Treasury Secretary Steven Mnuchin said Thursday, and it will pay for itself by boosting economic growth.
"The plan will pay for itself with growth," Mnuchin said at an event hosted by the Institute of International Finance in Washington.
In judging the tax plan's effect on the deficit, Mnuchin suggested, the administration will rely on assumptions that lowering tax rates and simplifying the code will accelerate economic growth, bringing more revenue into the Treasury.
Strong growth assumptions could allow the plan to avoid some of the tough trade-offs that otherwise the administration would have to make regarding eliminating tax breaks prized by interest groups. They would run the risk of adding to the federal debt if the growth does not materialize, however.
Mnuchin avoiding tipping his hand on how the administration feels about some of the choices House Republicans have made in putting together their own tax reform proposal, including the border-adjusted corporate tax that has proved controversial.
The administration is still weighing that option, Mnuchin said. Outside tax groups have found it could raise $1 trillion over 10 years to offset revenue lost through rate reductions.
One concern he voiced was about the plan's effect on the dollar. If it goes to plan, it would boost the value of the dollar, a dynamic that generally crimps businesses' sales overseas.
Nevertheless, he asserted that the administration plan would be one that could be passed in the House and Senate.
"We will get tax reform done. It will be sweeping. It will be significant," he said.