Cohn: 'Trickle-Down' Will Boost the Economy

Gary Cohn, chief economic adviser to President Donald Trump, said a "trickle-down" in the tax package will help the economy.

His comments came in an interview with CNBC's John Harwood.

"When you take a corporate tax rate at 35 percent and move it to 20 percent, and you see what's happened over the last two decades to businesses migrating out of the United States, migrating profits out of the United States, migrating domicile out of the United States, and hiring workers out of the United States, it's hard for me to not imagine that they're not going to bring businesses back to the United States," he said.

"We create wage inflation, which means the workers get paid more; the workers have more disposable income, the workers spend more. And we see the whole trickle-down through the economy, and that's good for the economy."

Meanwhile, Cohn also told CNBC he is convinced the tax package also will have a major impact on business.

"We believe that we're going to have a very stimulative effect on the economy by lowering the business tax rate, by lowering the corporate rate, and making America competitive with the rest of the world," he said.

"Look, a year ago, I was on the other side of this equation. I was advising companies how to get out of the burdensome U.S. tax system."

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