No to Tax Hike on Wealthy Coming
US Treasury Secretary Steven Mnuchin says The Trump Administration is not considering a tax increase on wealthier Americans, knocking down a report that White House adviser Steve Bannon had floated the idea as a way to pay for tax cuts for middle-income taxpayers.
“I have never heard Steve mention that,” Sec. Mnuchin said.
The Administration is aiming to release its full tax plan by September and have Congress approve it by the end of the year, Sec. Mnuchin said on TV Sunday.
So far, The Trump Administration has issued a 1-page summary of broad principles for tax reform, but few details.
The administration says it wants to reduce the top income tax bracket from 39.6 to 35% and lower tax rates for the middle class.
The GOP congressional leadership and The Trump Administration have struggled with the issue of how to offset the cost of tax cuts.
Sec. Mnuchin said the administration’s plan would pay for itself, but that’s only if about $2-T in increased revenue resulting from projected faster economic growth is included.
Under congressional budget rules, tax cuts can be passed with a simple majority in the US Senate, but only if they do not increase the deficit after 10 years. That would allow Republicans, who have 52 Senate seats, to pass the bill without any Democratic votes.