Trump says he 'may align' tax reform and infrastructure

Trump says he 'may align' tax reform and infrastructure
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President Trump says he "may align" his plans for tax reform and infrastructure after the White House released a tax plan last month that didn't include funding for transportation projects.

In an interview with The Economist published Thursday, Trump said the White House may link tax reform and infrastructure because Democrats support increased spending on the latter.

"They like it as much as the Republicans like it," he said. "We need infrastructure in our country."

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Trump also said he doesn't think his tax plan would disproportionately benefit the wealthy, since high-income individuals will be losing many deductions.

When asked about House Republicans' "border-adjustment" proposal to tax imports and exempt exports, Trump replied, "We are dealing with Congress ... because it’s not really what I’m considering." He said he likes the idea of a value-added tax, which is a type of consumption tax that typically has a border-adjustment feature in other countries, but thinks the American public wouldn't be able to get behind it.

"I don’t think it can be sold in this country, I think it’s too much of a shock to this system," he said.

Treasury Secretary Steven Mnuchin said during the Economist interview that the White House is "contemplating keeping" the deduction for businesses' interest expenses. The tax plan that House Republicans released last year would eliminate the deduction and instead allow businesses to immediately deduct the full cost of their capital investments.