Central Montana Times

U.S. Senator Steve Daines engaged in a discussion with Michael Faulkender, President Trump's nominee for Deputy Secretary of the Treasury, during a Senate Finance Committee meeting. The conversation focused on the significance of establishing permanent tax cuts to benefit American taxpayers and stimulate economic growth.

Daines expressed concern about the potential impact of an impending $4.6 trillion tax increase, emphasizing the need for permanency in the tax code. He stated, "Mr. Faulkner, good to have you here this morning... It's imperative we succeed in passing this bill." He highlighted that making these tax cuts permanent is crucial for small businesses and families.

Faulkender responded by underscoring the importance of making certain rates and deductions permanent: "...Just as we made the corporate income tax rate permanent in the 2017 legislation, it’s important to come back and make permanent these rates..."

The dialogue also covered government spending's effect on economic growth. Daines cited Milton Friedman, stating that focusing on government spending is key to fiscal responsibility: "The key to fiscal sanity is not just making tax cuts permanent but doing so in a fiscally responsible way."

Faulkender addressed concerns about federal spending levels: "As your comments suggest... over the 50 years prior to the pandemic, federal spending averaged just over 20 percent of gross domestic product..." He noted that increased government spending could potentially hinder private investment by reducing available capital.

Both Daines and Faulkender agreed on the necessity of addressing these issues to foster economic prosperity.