Tags: Trump Administration | Rubin | Tax | Reform | Stimulus | Economic | Growth

Rubin: Tax Reform Will Provide Stimulus But Not Three Percent Growth

By    |   Thursday, 20 April 2017 10:29 AM

Tax reform plans proposed by President Donald Trump and House Speaker Paul Ryan will provide "some stimulus" that could get economic growth to about two-and-a-half percent, but "it's a stretch" to think the numbers could reach three percent, former Treasury Secretary Robert Rubin said Thursday.

"Our basic rate of growth this year year, next year is somewhere around 2 to 2 1/4 percent, though people are lowering their estimates lately," Rubin, who served under former President Bill Clinton, told CNBC's "Squawk Box" program. 

"I think we're constrained by the ability of labor, by the labor supply. My guess would be, you can get to 2 percent, 2.5 percent."

Meanwhile, there is also the question of how the tax cuts called for in the plans will be funded, Rubin said.

"There's always been enthusiasm by the Republican Party for tax cuts and also in the Democratic Party for tax cuts," said Rubin. "I think the problem here is they have no way to pay for them."

Meanwhile, Rubin said he believes the house GOP's overall plan for reducing corporate taxes by adding a border adjustment import tax provision is "bad policy," as "the probability of the border tax happening is remote."

According to critics, a border tax could lead to higher prices for consumers while hurting retailers and other companies that rely on imports. However, advocates say the dollar's value will rise because of the policy, keeping importers from having to raise prices for goods.

Earlier this month, Office of Management and Budget Director Mick Mulvaney said there is "no reason" the United States can't return to three percent growth.

"When I speak to groups, I remind them, if you are a 30-year-old professional, your entire career has been spent in a depressed economy," Mulvaney told economist and Newsmax Finance Insider and CNBC anchor Larry Kudlow on his national radio show.

"We never saw three percent growth in a single year for the Obama administration, in the 90s, it was typical for us. There's no reason we can't get that back."

The White House's timeline for tax reform legislation has been pushed back after several setbacks occurred during the attempt to repeal and replace Obamacare, Treasury Secretary Steven Mnuchin said in a recent Financial Times interview.

At this point, Mnuchin said, it may be "highly aggressive to not realistic at this point" to plan for reform legislation to land on Trump's desk by August.

Related stories:

© 2019 Newsmax Finance. All rights reserved.

   
1Like our page
2Share
StreetTalk
Tax reform plans proposed by President Donald Trump and House Speaker Paul Ryan will provide "some stimulus" that could get economic growth to about two-and-a-half percent, but "it's a stretch" to think the numbers could reach three percent, former Treasury Secretary Robert Rubin said Thursday.
Rubin, Tax, Reform, Stimulus, Economic, Growth
424
2017-29-20
Thursday, 20 April 2017 10:29 AM
Newsmax Media, Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved