Trump tax plan may produce some short-term budget issues - Mnuchin

Not worried by US tax reforms Germany

President Donald Trump on Friday signed executive actions directing the Treasury Department to review two key Dodd-Frank powers and identify burdensome or unnecessarily complex tax rules.

The Associated Press reported Friday that Trump said the plan will result in "massive" tax cuts for both individuals and businesses.

Trump, who campaigned on large tax cuts for businesses and individuals, had said on February 9 that he would be releasing a "phenomenal" tax plan to overhaul the tax code within two to three weeks.

Trump did not give a specific day on which the White House will lay out the plan, pointing only to "Wednesday or shortly thereafter".

The executive order directs Treasury Secretary Steven Mnuchin to review regulations added to the tax code since the beginning of previous year.

The Trump administration hopes to push comprehensive tax reform through Congress.

Boston University law professor Tamar Frankel, an expert in financial system regulation, said Dodd-Frank has not achieved the objective for which it was designed, which is to create consumer confidence in the banking industry.

White House official says tax reform package could come next week. Aside from blowing a hole through the deficit, it does not provide the certainty that US businesses need to make long-term investment decisions.

Treasury Secretary Steven Mnuchin and other senior officials have signaled that the administration is more concerned about growth and job creation and will rely on so-called dynamic scoring rather than revenue neutrality in crafting its changes. The border-tax concept is estimated to raise more than $1 trillion in revenue over 10 years; without that, it may be hard for any plan to achieve revenue-neutrality.

"That's what the U.S. is complaining that other countries do to us now", Christopher said.

"These regulations enshrine "too big to fail" and encourage risky behaviour", Trump said of the regulations, adding that they are failing in their role as safeguards.

While a president can work to spearhead an agenda and whip lawmakers behind their cause, Trump will be at the mercy of lawmakers as far as tax reform is concerned. I think everybody would agree that the tax system is way too complicated and burdensome, he said.

Mnuchin and his Treasury staff are already fulfilling a prior request by the president to review regulations and find ways to reduce the burdens on businesses.

Just where Trump stands at this point on the border adjustment tax is murky.

"You might see us floating some principles before then", Mr. Mulvaney said.

Trump and his camp have long maintained that he would release his returns once a supposed audit was finished, but IRS officials have said that audits do not bar people from releasing their returns.