Treasury Secretary Mnuchin did not cause the recent dollar dive. His remarks
(“Obviously a weaker dollar is good for us as it relates to trade and opportunities”) at
the World Economic Forum in Davos were surprising, because government officials have
historically not been willing to acknowledge that when the value of the dollar falls, it
makes US exports cheaper. The result can be good for US manufacturers and can also
improve the trade balance.
The Senate’s passage (51-49) of the budget blueprint last week paves the way for Republicans plan to tinker with the tax code with just GOP votes, which means that tax negotiations have entered a new phase. Last week, the President’s Council of Economic Advisers argued thatPresident Trump's tax plan, which aims to reduce the top corporate tax rate from 35 percent to 20 percent, would boost the average American family’s income by $4,000 under . Critics, including former treasury secretary Lawrence Summers, questioned the $4K promise.
Read MoreOn Tuesday night, the President will speak to a joint session of Congress, where he could finally outline details of a major overhaul to the personal and corporate tax system. Last week, Treasury Secretary Steven Mnuchin told CNBC that the administration is “primarily focused on a middle-income tax cut and simplification for business. And what we are focused is that on the high end, if there are tax cuts, that they are offset with reduction of deductions and other things.”
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