One of the ways to raise revenue, outlined in the single page of tax reform principles released by the administration last month, is to eliminate nearly all personal deductions except for mortgage interest, charitable donations and retirement plans. The administration has not listed which corporate deductions will be headed for the chopping block. And it has not estimated how much any of these moves might raise — or whether they would indeed be enough to pay for the deep tax cuts that the administration has championed.
Mnuchin attempted his own balancing act during his separate testimony Thursday before Congress. He said that the tax plan will be paid for both through economic growth and through increasing revenue in other ways, but he did not provide a breakdown. Mnuchin said the details have yet to be hashed out.
“When the president’s budget was done, we were not ready to have a full-blown tax reform plan that we could put into the budget,” he said. “I assure you when we present a tax plan, we will not be double-counting the growth.”