By: Zack Duvall
Treasury Secretary, Steven Mnuchin, told ABC’s George Stephanopoulos Sunday that the Trump White House is still fully committed to passing a tax cut for all middle-income Americans, and the plan for such cuts could be unveiled as early as September.
“We’re absolutely committed to getting tax reform done this year. It’s critical for economic growth.” Mnuchin told stephanopoulos during Sunday’s This Week with George Stephanopoulos.
Mnuchin went on to highlight the fact that since the end of the recession in 2009, the economy has grown by a constant 2%, but said that 3% growth was not out of reach, and could be seen through tax cuts and reforms for American households and businesses.
The White House and President Trump’s economic team have said that they are optimistic about the potential growth and benefits tax code reform could bring, and have expressed confidence that once proposed formally, would be passed quickly by both chambers of Congress.
The new plan that Treasury Mnuchin and the White House plans to unveil later this year is believed to be very similar to the blueprint for such action that Mnuchin, along with National Economic Director Gary Cohn, proposed in April that would streamline the current 7 tax brackets to a mere 3. The 3 brackets would be taxed at 10%, 25%, and 35%. Although no income ranges or figures have been set for the brackets.
Mnuchin also took time during his Sunday interview to push back against various reports that senior Trump administration aide, Steven Bannon, is calling for a 40% tax rate on the wealthiest Americans. Going so far as to call it a “false leak” and saying that it “isn’t on the table.”
Anticipation for such tax reform is growing, especially among the business community and Wall Street, with many well known American CEO’s penning a letter to the White House calling for the legislation to be fast tracked so that growth seen in the first six months of the Trump administration can remain steady, and optimism in the workplace can continue to rise. The letter by business leaders went on to call tax code reform “a once in a generation opportunity to substantially improve America’s economy.”
Administration critics, however, have said that the proposed tax cuts would benefit only wealthy Americans who have tendencies to save money, as opposed to spending it in the economy.
However, Mnuchin, when asked by Stephanopoulos, pushed back on that criticism and reiterated the fact that the focus on the White House’s tax reform plan is on a “middle-income tax credit.”