Mnuchin: Republicans haven’t lost the messaging war on Trump’s tax law

Treasury Secretary Steven Mnuchin on Thursday pushed back on arguments that Republicans have failed to successfully sell President Trump’s tax law to the public, saying taxpayers are just now starting to see the effects of the 2017 measure.

“I don’t think we’ve lost the message war at all,” Mnuchin said at an event hosted by The Hill and sponsored by EJF Capital.

{mosads}Mnuchin said the Federal Reserve has estimated that gross domestic product will exceed 3 percent for the year, and he touted elements of the tax law, such as a provision that allows businesses to immediately write off the cost of capital investments.

“We’re just beginning to see the beginning impact, and I think over the next few years we’ll see that continue on,” he said.

Mnuchin’s comments come as polls have shown a lack of widespread support for Trump’s tax law, which the president signed in December. Bloomberg News last week reported on a Republican National Committee poll that found that most people think the tax cuts benefit the wealthy and corporations more than the middle class.

House Republicans this week are expected to vote on legislation that would permanently extend the 2017 law’s tax cuts for individuals, but it’s unclear if that will benefit them politically, particularly since the Senate is not expected to take up the bill.

The Treasury Department and the IRS are working to implement aspects of the 2017 tax law, from updating forms and technology to issuing regulations. Mnuchin said that Treasury and IRS officials meet daily to discuss implementation, “because this is a very important part that we get this done and we get it done correctly.”

The IRS has received dedicated funds from Congress to implement the tax law. Beyond tax-law implementation, Mnuchin said he hopes the IRS receives more money to improve its technology.

“We’ve underinvested in technology and it’s critical that we bring it into the modern age,” he said.

On trade, Mnuchin said that the U.S. is not in a trade war with China, but instead that “we’re in a trade dispute with China.”

Many of the issues that the U.S. is dealing with now are ones that it dealt with 10 years ago, Mnuchin said, adding that there’s been “constant dialogue behind the scenes” with China. He said the administration’s goal is to get fair trade.

Trump recently reached a trade deal with Mexico, and Mnuchin said he hopes the administration reaches a similar agreement with Canada. The Treasury secretary said he’s confident that Congress will approve the trade pact with Mexico even if a Canada deal isn’t reached.

Democrats are expected to gain seats in the House during the November midterm elections, and may take control of the chamber. Mnuchin named infrastructure and housing reform as two areas he wants to focus on next year, saying the latter will need to be addressed on a bipartisan basis.

He said says he expects to remain in his position for the duration of Trump’s first term, if not longer.

“I’m absolutely going to be here through 2020, and if the president wants me here for the second term, then I’d be here with him as well,” he said.