US Treasury secretary: Tax cuts won't raise budget deficit

U.S. Treasury Secretary Steven Mnuchin
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WASHINGTON (AP) - Treasury Secretary Steven Mnuchin says that the administration's tax reform will generate so much economic growth that the budget deficit will be held in check.

Mnuchin said at the Monday White House news briefing: "The tax reform will pay for itself."

Most economists say it's unlikely that tax cuts can generate enough growth to prevent the budget deficit from rising.

The Trump administration has yet to provide details about its planned tax reforms. President Donald Trump has pledged a massive tax cut and said the middle class would benefit. He told The Associated Press in an interview that elements of his plan will be released as early as Wednesday.

The administration seeks to push annual economic growth above 3 percent, roughly double the 1.6 percent growth achieved last year.

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