US Treasury chief sees 'competitive' corporate tax rate

Gladys Abbott
September 12, 2017

At the Delivering Alpha conference presented by CNBC and Institutional Investor, Mnuchin reiterated that the White House wants to scrap state and local tax deductions.

Treasury Secretary Steven Mnuchin said Tuesday the Republican tax overhaul plan will end the ability of hedge funds to enjoy a reduced tax rate on income by using the so-called carried interest tax break.

"We're going to get this done by the end of the year", said Mnuchin.

Trump vowed to reduce the corporate tax to 15 percent to attract more companies to do business in the United States.

Republicans across the board want to lower the corporate rate, which is now 35 percent, as part of tax reform.

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"The good news is we have over 100 people at Treasury working on this", Mr. Mnuchin said.

"This is the most important issue for the American economy", he said.

Mnuchin said the top tax rate may be cut but that this would be offset by the loss of deductions, particularly deductions for state taxes. President Trump has said that they should get taxed at a higher rate that counts that money as income. Eliminating those provisions, in general, would affect high-tax blue states like NY and California.

During the presidential campaign, Trump called for ending the "carried interest" tax break that benefits investment-fund managers - a tax break that Democrats would also like to see eliminated.

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