Wash. D.C. money.com
President Trump’s Treasury Secretary said that the new administration will prioritize tax reform, but that it won’t result in a tax cut for the rich. “Any reductions we have in upper income taxes will be offset by less deductions so there will be no absolute tax cut for the upper class. There will be a big tax cut for the middle class, but any tax cuts we have for the upper class will be offset by less deductions that pay for it.” Steven Mnuchin said in an interview with CNBC.
It’s interesting because his description of what reform will look like differs from what Trump himself has proposed. In the latest version of Trump’s tax reform plan, everyone would get a tax cut, but the rich would see the biggest cut of all, according to independent analyses. The Tax Policy Center, for instance, found that those in the top 1% would see an average tax cut of roughly $1 million.
As it is, Trump already raised the income tax rates he originally proposed to conform to those in the House plan. But he didn’t go as far as the House plan in terms of limiting deductions. He proposed capping the value of itemized deductions at $200,000 for joint filers. The House plan gets rid of all deductions except those for charitable contributions and mortgage interest. This is hardly the first time an advisor to Trump has said something different than what his boss has espoused publicly.
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