Cohn says entire tax cut can be paid for with economic growth
By MarketWatch, MarketWatch
A tax-reform blueprint released by the White House and congressional leaders on Wednesday left out key features including how to pay for the major tax cuts that Republicans want. But President Donald Trump's chief economic adviser thinks the whole package can be paid for as the economy heats up.
Speaking on CNBC, National Economic Council Director Gary Cohn said Trump and GOP leaders believe the package will "drive a lot of business back to America" and predicted an economic growth rate of "substantially over 3%" due in part to tax reform.
Opinion:Can Trump deliver 3% growth? (http://www.marketwatch.com/story/can-trump-deliver-3-growth-2017-06-19)
By one estimate (http://www.crfb.org/blogs/big-6-tax-framework-could-cost-22-trillion), the tax cuts will cost $2.2 trillion through 2027.
Even as Cohn was promoting growth as the way to pay for the tax cut, the tax framework leaves it to Congress to fill in revenue-raisers. The blueprint calls for keeping the mortgage-interest deduction and tax incentives for charitable contributions. But the state and local tax deduction is on the chopping block, which could raise $1.3 trillion over 10 years, according to the Tax Policy Center.
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