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Trump picks Steve Mnuchin to lead Treasury Department

Trump picks Steve Mnuchin to lead Treasury Department

Mnuchin, speaking overnight on CNBC in the USA alongside Wilbur Ross, the billionaire investor who is President-elect Donald Trump's pick to be Commerce secretary, said tax cuts for businesses and the middle class, fewer regulations, infrastructure investment and bilateral trade deals can help the world's largest economy achieve 3 per cent to 4 per cent growth.

"It's hard to think of a nominee who better embodies the culture of Wall Street greed than the former Goldman Sachs partner", the Communications Workers of America, a labor union, said in a statement. We're going to cut corporate taxes, which will bring huge amounts of jobs back to the United States.

"Taxes are way too complicated and people spend way too much time worrying about ways to get them lower", Mnuchin said.

The former banker and film producer added that proposed changes would include a cut in the nation's top business tax rate from 35% to 15%, as well as a special rate of 10% given to those companies who move overseas funds back into USA entities. Back when the baby boom was entering the workforce, the USA could grow at those rates because the economy was adding large amounts of workers.

Speaking on CNBC, Wilbur Ross, Mr Trump's nominee for Commerce Secretary, said regulatory changes meant "many" smaller banks now had "more compliance people than lending offices", adding: "That's insane".

Mr. Ross said another priority would be to negotiate more bilateral trade agreements that lower tariffs and reduce costs for USA exporters.

"We're thrilled to work for the president-elect and honored to have these positions", Mnuchin said.

"Our No. 1 priority is gonna be the economy", Mnuchin told reporters in the Trump Tower lobby. What we're going to tell them is the same folks that helped craft the president-elect's tax plan have taken that message of economic populism.

President-elect Donald Trump said Wednesday that he's leaving his business empire to focus on being the nation's 45th president, bowing to pressure to avoid potential conflicts of interest between governing and profiting in the private sector.

Mnuchin said he wanted to bring "a lot of cash back to the US", proposing a one-time 10 per cent repatriation tax to return corporate tax revenue held overseas.

Despite the recent rise in bond yields, Mr. Mnuchin said he expected interest rates to stay "relatively low for the next couple of years", but that it would also make sense for the Treasury to consider extending the maturities of outstanding debt "because eventually we're going to have higher interest rates". And, on that basis, even though the retirement preferences are completely different from other tax deductions, from a budgetary scoring standpoint, it's a big, juicy target. Others have tried such plans and failed, he said, citing the federal tax reforms proposed in 2014 by then-congressman David Camp, R-Mich.

"Where are the spending cuts? Where are the federal entitlement reforms?" asked Goulder.

There's a good deal of skepticism that that pace of growth could be sustained for very long.

He confirmed that Mr Trump will push to cut the top corporate tax rate from 35% to 15%. However, referring to personal income taxes, Edwards predicted it would be "difficult to ensure that everyone gets a break".