Treasury Secretary Steven Mnuchin said Tuesday that backdating corporate tax cuts is being considered, although the U.S. President Donald Trump's much-anticipated tax reform is yet to be announced.
Mnuchin explained that there is a possibility that tax reform could be backdated to Jan. 1, 2017.
Should the tax reform be backdated to January, this would mean that American corporations could benefit this year from the massive tax cuts that Trump wants to introduce.
"Absolutely. This is still something we are considering, and it would be a big boon to the economy," he added.
During his campaign and after taking the White House, Trump said he plans to lower the U.S.' corporate tax rate to 15 percent, from 35 percent.
Trump's administration initially planned to present a tax reform proposal to the Congress before its August recess. However, no proposals were made, and the administration shared very little about the reform with the public.
"In January, we had a plan that was lined out, working with Congress, that we thought we could get tax reform done by August," Mnuchin said at the Delivering Alpha conference held in New York.
He stated that the government viewed reforming healthcare as a top priority, but delays in that area pushed back the tax reform.
"Healthcare took longer than we expected," Mnuchin said, referring to the administration's attempts to repeal and replace Obamacare.
The secretary, however, stressed that tax reform would now take precedence for Trump, and added: "We're gonna get this done by the end of the year."
Critics, however, argue that lower tax income for the government may lead to an increase in the federal deficit.
By Ovunc Kutlu in New York
Notice: Trying to get property of non-object in /home/gatewayturkey/public_html/wp-content/themes/flex-mag/functions.php on line 2149