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Treasury Secretary Steven Mnuchin admitted in an interview with Financial Times that President Donald Trump's planned tax cuts and reform will not come by the congressional recess in August.Mnuchin had previously said that he wanted to have a massive tax reform bill on Trump's desk by the August recess.
"It started as [an] aggressive timeline," Mnuchin told the FT. "It is fair to say it is probably delayed a bit because of the healthcare."
Mnuchin also called the deadline "highly aggressive to not realistic at this point" in the interview.
The Treasury Secretary also said that the team working on the tax plan has not taken the controversial border adjustment tax "off the table."
Mnuchin's comments confirm the fears of many analysts, who assumed that the timeline for tax reform would be pushed back after the GOP's failure to pass the American Health Care Act. House Speaker Paul Ryan and President Trump admitted that not repealing Obamacare's taxes (which the AHCA would have done) makes tax reform more difficult.
Trump promised during the campaign to cut the federal corporate tax rate to 15% from its current 35% and lower personal taxes. He heralded the cut as the biggest since Ronald Reagan's presidency.
Recent reports, however, indicate that Trump's team may not be able to cut corporate taxes all the way to 15% and the rate may end up being as high as 28%.