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Maurice Obstfeld : “The Impact Of Trump Administration Tax Reform Remains Unclear”

Maurice Obstfeld, Economic Counselor and Director of Research at the IMF, says that “the impact of Trump Administration tax reform remains unclear.”

Maurice Obstfeld, Economic Counselor and Director of Research at the IMF, said at the Annual Meetings press briefing on October 10, 2017,  in Washington D.C. that “the impact of Trump Administration tax reform in the U.S. remains unclear.”

Obstfeld was openly hesitant to share with the press corps his personal impression of the Trump administration tax plan justifying his reluctance by the fact that there is a lot yet that needs to be determined.  “These may seem like details to some, but they are actually quite crucial to how the things will work and what kind of deficit or surplus in the government budget will lead to. So we are looking forward to further details as the plan is negotiated,” he explained.

Instead, Obstfeld offered to discuss the tax plan in terms of general principles, stating that simplification is a good thing. “If it brings a sharp reduction in exemptions, loopholes, special giveaways, which allow a reduction in rates, that is also a good thing”, he added.

Sharing the findings of the IMF on the global economic outlook, he said that that “the global recovery is continuing and at a faster pace”. Obstfeld stressed that policymakers should seize the moment by calling them to take advantage of stronger economic conditions to adopt policies that will support growth and raise economic resilience in the future.

“What happens with government revenue is important as well. Do you invest in productive infrastructure, do you invest in people? How do you structure the spending side? In general, given where the U.S. is, in terms of its overall debt level and the off-the-balance-sheet obligations going out into the future as population ages, we feel that whatever the tax reform plan looks like, it should not increase the deficit. Over the medium term, as our article IV advice made clear, tax reform should be revenue enhancing,” concluded  Maurice Obstfeld.

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Ksenija Pavlovic

Ksenija Pavlovic

Ksenija Pavlovic is the Founder and Editor-in-Chief of the Pavlovic Today, The Chief White House Correspondent.

Pavlovic was a Teaching Fellow and Doctoral Fellow in the Political Science department at Yale University, Lead Instructor in International Affairs and Security and Politics Law and Economics programs at Yale Global Scholars, Head Writing Fellow at the Yale Graduate Writing Center, Fellow of the “Research and Travel Award in Grand Strategy” from International Security Studies (ISS) at Yale University, Fellow of the Roger Hertog Global Strategy Initiative in Religious Violence at Columbia University, a Doctoral candidate in Political Conflict and Peace Building Processes at Complutense University in Madrid, Fellow of the OSI Global Supplementary Grant Program, and a Visiting Doctoral Fellow at the Juan March Institute. She holds an M.Sc. in European Politics from the London School of Economics, an M.A. in American Politics, and a B.A. in Journalism and Communication from the University of Belgrade. She speaks English, Serbian, Croatian, and Spanish.

Pavlovic has interviewed exclusively pivotal figures including Arianna Huffington, Sir Richard Branson, President of the World Bank Jim Yong Kim, Karlie Kloss, filmmaker and founder of the Webby awards Tiffany Shlain, film director Lars von Trier, actors Adam Brody, Monica Bellucci, fashion designers Adolfo Dominguez, Tommy Hilfiger and Donna Karan, publisher and former presidential candidate Steve Forbes; the world No.1 tennis player Novak Djokovic; novelist Martin Amis, as well as big names in the governmental arena such as the former President of Serbia Boris Tadic, the leading members of the first democratic Serbian government and Milorad Dodik, President of the Serbian entity of BIH. Moreover, Ms. Pavlovic has exclusively covered the Cannes Film Festival, Venice Film Festival, Sarajevo Film Festival, London Film Festival, Madrid Fashion Week, The Madrid Open, and a range of other international benefit and political events.

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