Mnuchin: "Extraordinary" If Tax Reform Gets Done This Year; "No Question" Market Drops If Bill Fails

Barely a day after Gary Cohn told an audience at the annual meeting of the American Bankers Association that Congress has a “unique opportunity” to pass tax reform by the end of the year, Treasury Secretary Steven Mnuchin – who shares responsibility for the administration’s tax agenda alongside Cohn – acknowledged the truth about Trump’s No. 1 legislative priority: namely, that it would be “extraordinary” if the Republicans could pass tax reform by year’s end.

At a Tuesday press conference, Mnuchin borrowed a line from his boss and reminded his audience that it took a couple of years for Ronald Reagan to pass tax reform, in the process risking the end of the bull run that yesterday carried the Dow above 23,000, a rally that has largely been predicated on investors’ hopes for tax reform, according to the Hill.

"It took Ronald Reagan over two years on a bipartisan basis to get tax reform done," Mnuchin said during an interview on Fox News' Special Report with Bret Baier. "If we get it done this year, it will be extraordinary."

 

"Our objective is to get it on the President’s desk by December to get him to sign it this year," Mnuchin added, but cautioned that there's "no artificial deadline."

 

"We are going to work on it as fast as we can," the Treasury secretary added.

Mnuchin called the GOP plan to reform the tax code critical to creating a "competitive" environment for American businesses.

On Monday, Trump made similar remarks at a press conference with Mitch McConnell that was, somewhat ironically, intended to address concerns that the fractured Republican leadership might bungle tax reform like they bungled Obamacare repeal. At the conference, Trump surprised reporters by admitting that Congress still has a "long way" to go on tax reform.

“I would like to see it be done this year,” Trump said. “But don’t forget it took years for the Reagan administration to get taxes done — I’ve been here for nine months.”

 

“We could have a long way to go but that’s okay," he added.

To be sure, the urgency of tax reform hasn’t been lost on the Republican leadership. House Speaker Paul Ryan has threatened to keep Republican representatives – who are on vacation this week but have just 28 voting sessions left in the year - in Washington over the December holiday break if they don’t manage to write and pass a bill before then. Of course, it’s far more likely that reform will hit a wall in the Senate, where the Republicans’ razor-thin majority has allowed a handful of senators to effectively obstruct the Trump agenda.

Oddly, in a Politico interview published this morning, Mnuchin – already a master of mixed messaging – warned that passing tax reform by year end is “essential” and that, if it doesn’t happen, markets could tank.

“There is no question that the rally in the stock market has baked into it reasonably high expectations of us getting tax cuts and tax reform done,” Mnuchin said in the interview. “To the extent we get the tax deal done, the stock market will go up higher. But there’s no question in my mind that if we don’t get it done you’re going to see a reversal of a significant amount of these gains.”

Mnuchin had promised earlier this year that tax reform would be done by August. Then it was year-end. Now, it appears the only concrete “deadline” for reform is some time just before the 2018 mid-term election. And once again, market implied odds have proven correct, while many market strategists – like the team at Goldman with its 65% odds of a deal by Q1 – have been far too optimistic.

In a breakthrough for the Trump administration, Sen. John McCain said last night he’d vote yes on a budget bill that the Senate is rushing to pass by the end of the week. That bill would unlock the reconciliation process, allowing Republicans to pass tax reform with a simple majority and circumvent a Democratic filibuster.

Still, it’s unclear if Republicans have the votes to pass that legislation, which is expected to be brought to a vote Thursday morning.  
 

Comments

BandGap Give_me_liberty_or Wed, 10/18/2017 - 07:34 Permalink

More fucking suttle arm twisting. They know exactly what is going to happen but have to make it look like they are doing something, anything. Dickhead.Steve's wife keeps calling. I told her we would talk after she mows the lawn and takes out the trash. Jewish princesses are so needy.

In reply to by Give_me_liberty_or

Golden Showers Wed, 10/18/2017 - 07:25 Permalink

So what happens when the Fill Bails?Oh, you're still in D.C. with a bunch of clowns pretending to give a fuck.I think you couldn't deliver a hot pizza, let alone do anything but talk about a year like it's a fucking week.Shove it up your ass.Why don't you go to lunch or whatever you do and shut up? Get some pizza or go to the Olive Garden and wear those fake glasses you pretenders.

John Law Lives Wed, 10/18/2017 - 07:26 Permalink

"...the Dow above 23,000, a rally that has largely been predicated on investors’ hopes for tax reform, according to the Hill."Pure B.S.  The "market" rally began off the intraday lows of February 11, 2016 when the DJIA was at 15,503.11 and has risen nearly 7,500 points since then.Fed_FUBAR

Give Me Some Truth John Law Lives Wed, 10/18/2017 - 10:41 Permalink

Re: The market will crash if ...Ha!The stock market is rigged. It will (probably "must") go up regardless of anything that may or may not happen in Congress.Munkin is fear-mongering, which is all Establishment players do. Makes me wonder even more what's in this tax bill and why it's so important to the Establishment that it passes.P.S. Just like the stock market will go up (regardless of anything that might happen), the gold and silver prices will go down or be capped at a low enough level regardless of anything that might happen in the world or Washington. This "market" is also rigged and manipulated. And this too MUST happen, so it will. 

In reply to by John Law Lives

A82EBA Wed, 10/18/2017 - 07:30 Permalink

OT but looking at gold on monthly basis, every candle with $150 or more spread has had its low retested since 2008 and last jan was the last test. 

Ghordius Wed, 10/18/2017 - 07:28 Permalink

nah, it's way more simple then thattaxes are too high. if you reduce taxes, the economy goes off, and you get even more tax receiptsit follows that if you reduce taxes to zero, the economy goes to the moon, and you get even more tax receiptssimples, really. there is no such thing as "too much of a good thing"

BandGap Ghordius Wed, 10/18/2017 - 07:40 Permalink

Do you understand what balance is? Here, I'll try to help.Carrots are good for you, essentially they are very good for vision and an execllent sources of vitamin K and B6. However, if you eat too many carrots it causes health problems, one of them being you don't absorb the good stuff found in carrots. 

In reply to by Ghordius

JailBanksters Wed, 10/18/2017 - 07:35 Permalink

Tax Reform,this is the funniest thing since Powell said: Saddam has dozens of Mobile Chemical Plants driving around Baghdad right now while I'm doing this Presentation !!And Wile E Coyote was doing his presentation at the UN 

lester1 Wed, 10/18/2017 - 07:33 Permalink

The bill will fail ! Were $20 trillion dollars in debt. Tax cuts will only blow a giant hole in the budget deficit. And who's going to buy US Treasuries and soak up all that new debt?  Interest rates will spike and cause another financial crisis.

Give Me Some Truth lester1 Wed, 10/18/2017 - 10:54 Permalink

Re: Who's going to buy all those treasuries and bonds and soak up all this debt?That's an easy one.Answer: "Someone."Debt doesn't matter so why all this fuss over tax cuts or increases and spending "cuts" or increases? Moot. America owns and operates the printing press for the world's reserve currency.Need to expand the military? Do it. Need to pass $51 billion in hurricane relief? Do it. Need to pay for prescription drug benefits for 70 million seniors? Do it. Need to expand Medicaid? Do it. Need to extend the "debt ceiling?" Do it. Need to keep doing all of the above? Just keep issuing debt. Someone will buy it. They always have, right? 

In reply to by lester1

vegan Wed, 10/18/2017 - 07:35 Permalink

Just out of spite now, or perhaps a matter of principle, the deep-state/fed/elite can't let the bubble pop until after this passes.Interesting...

J J Pettigrew Wed, 10/18/2017 - 07:36 Permalink

Buy the rumor....of Trump's tax largess for corporations in play since November , and sell the fact?OR sell the fact that it wont be passed.....?Meantime, Morgan Stanley and Goldman print money.....

Ricki13th Wed, 10/18/2017 - 07:37 Permalink

This is the only thing that this guy care about is enriching Wall Street who cares about the little guy. He wife said it best on Instagram when they used tax payer money to see the Ecilipse. Sad!

lester1 Wed, 10/18/2017 - 07:39 Permalink

When this tax bill fails, that globalist piece of shit advisor Gary Cohn should be fired immediately.  Keeping out the border adjustment tax was the dumbest thing he did. He could have simply done 15% border adjustment tax in exchange for lowering the coporate rate to 15%. It would have been deficit neutral and would easily pass with bipartisan support.

Golden Showers NickPeeMe Wed, 10/18/2017 - 07:53 Permalink

Why don't you take your He Man and go play Master of the Universe at Castle Greyskull with your gayness flag wrapped about you like you are here to do anything else.Matter of fact I actually enjoyed She Ra. She had an awesome body to my adolescent mind. Sort of like that girl fom "Whos the Boss?".She was smoking hot.But here's a film for you to enjoy that is more on your level.https://www.youtube.com/watch?v=WiRPtHvdfoYHe-man and She-ra the Movie. Get in touch with yourself before you get in touch with other people, okay?Go beat off for a while and think about whether you need to beat off here.Haven't you learned that grab assing is wrong in the past week? That's like a whole year in your cucked little lifespan on this site.If you don't like that I have some transformers on sale on ebay. I have jetscream...Dick.

In reply to by NickPeeMe

Golden Showers Wed, 10/18/2017 - 07:43 Permalink

Oh: The View just called and asked if you could do takeout.You know what happens when those bitches don't get their kibble on time.Seth Ritch keeps waking me up at night talking about things like he wasn't robbed or nothing. Maybe you could get him a slurpee. You know. Pour it out for him while you fuck around pretending to do stuff.There's so much online that I've seen. But I've never seen anyone open up their asshole wider than you democratic politicians. I mean, everything you do is disgusting.But I'm really glad you have that good good health plan while our veterans get treated like shit so you can play all day and oh, just miss getting rid of Obamacare because you don't give a shit. What is it to you? You like your position. It suits you. You look good in it because you practiced. Hard.After 27 hours and 27 beers you still don't look good to me you rank bottomless toolboxes. No matter what I do I cannot ever look at you and agree that you are capable of anything but whoring it to people with standards so low that I hate to look at you.And how many times has Kissinger been to the white house?http://www.cnn.com/2017/05/10/politics/donald-trump-henry-kissinger/ind… drunk as hell and I'm not going to take it any more!Peace

shizzledizzle Wed, 10/18/2017 - 07:45 Permalink

No question eh? LOL, repeat after me... It's priced in! If NK air bursts a 5 megaton thermonuclear device high above the US... It's priced in! EVERY FUCKING THING IS PRICED IN!

MK ULTRA Alpha Wed, 10/18/2017 - 07:48 Permalink

Chinese are buying robots at an incredible rate. US multinationals are accelerating move from US to China. Tax Cut is for stock market, not rebuilding US economy. Multinationals with off shore manufacturing and foreign workers are getting a tax cut. Not to come back, but to stay. Tax cut could've been fine tuned to make them come back, it was a blatant give away for nothing in return, tax cut only rewarded stock market, NYC and Goldman. Fly over America is F/////. Multinationals flood US with foreign made goods, US trade deficit with China is nearly 400 billion, and in next three years over a trillion dollars. Goldman killed America. One world government, one world bank, one world currency and one world religion of worship of state, the long term goal of Zionist Jews, International Communism is still an operational reality. America is being bled Kosher, more wealth inequality. More wealth and knowledge in the hands of fewer and fewer. I know lets borrow for tax cut give away and borrow for more wars. It's the best we could think of, and no one will say anything because it's all for the stock market.

Totally_Disill… Wed, 10/18/2017 - 08:06 Permalink

Not sure about you but I'm sick and tired of all this manipulation.  More importantly the GOP and DNC are seen as pushing the refugee agenda to provide cheap labor for their donors.  "ACT for America President Brigitte Gabriel said certain U.S. industries seek to hire refugees instead of regular U.S. workers because a refugee's salary is often subsidized through the federal Work Opportunity Tax Credit (WOTC), which means "the regular American goes to the back" of the employment line while refugees are imported and hired, many of whom "do not share our values" and sometimes work "against our own country."