December 12, 2017

Warren Calls on Mnuchin to Explain Treasury's Sham "Analysis" of Republican Tax Plan

Urges Full Cooperation with Ongoing IG Investigation

Text of the letter (PDF)

Washington, DC - United States Senator Elizabeth Warren (D-Mass.) today sent a letter to Treasury Secretary Steve Mnuchin requesting more information about the dubious claims made in the Treasury Department's "analysis" of the Senate Republican tax plan. Warren also urged Treasury Secretary Mnuchin to cooperate fully with the pending Inspector General investigation she requested last month.

"After repeatedly promising to release a robust Treasury analysis showing that the Republican tax bill would pay for itself, you released a one-page report that provided no meaningful economic analysis of the tax bill and admitted that the bill would not, in fact, pay for itself," wrote Senator Warren.

The one-page "analysis" released yesterday by the Treasury Department latched onto the Trump Administration's earlier unsubstantiated assertion that its policies would increase annual GDP growth from 2.2% to 2.9%, and asserted, without providing any underlying economic analysis, that "Treasury expects approximately half of this 0.7% increase in growth to come from changes to corporate taxation.'"

Senator Warren pressed Secretary Mnuchin on whether the growth projections used in the "analysis" came from the Treasury Department's political appointees rather than its economic experts at the Office of Tax Policy (OTP). She also urged Secretary Mnuchin to cooperate fully with the Office of Inspector General's pending review of the Treasury Department's use of taxpayer dollars to conduct economic analysis of the tax plan, so it can release the results before Congress votes on final passage of the tax bill.