The middle class is about to get screwed again. Democrat or Republican, it doesn’t matter anymore. The people get shafted. We learned that U.S. Treasury Secretary Steven Mnuchin Today just said one of the top goals of the Trump administration’s tax plan is to help the middle class, but he “could not guarantee” that every middle-class family would see a tax cut.
“It is our objective that the entire middle class will get a tax cut. You cannot make guarantees because every single person’s taxes are different, people take advantage of different things, so we can’t make that guarantee,” Mnuchin said on ABC’s “This Week” program.
While this may seem like a sensible thing to say, as it is very possible not EVERYONE would benefit, we think this cautionary statement suggests far fewer will benefit than intended.
We do know that President Donald Trump last week outlined principles for his proposed tax plan, including reducing the corporate income tax rate to 20 percent, establishing a new 25 percent tax rate for pass-through businesses and lowering the top income tax rate for individuals to 35 percent.
However it is the top tier that benefits once again. In A report on Friday from the non-profit Washington-based Tax Policy Center, they found that taxpayers in the top 1 percent income bracket – above $730,000 – would receive about 50 percent of the total tax benefit from the overhaul, with their after-tax income forecast to increase an average of 8.5 percent.
The group said about 12 percent of taxpayers would face a tax increase of roughly $1,800 on average. That is likely those in the middle class. Mnuchin and other Trump administration officials defended the tax plan, saying it is not aimed at helping the rich while acknowledging the details were in flux.
Gary Cohn, Trump’s top economic adviser, said no one knows yet how Americans will be affected by the proposed tax reform plan because it has not been finalized.
“When people come out with these definitive statements of what the tax plan is going to do, or what the tax plan is not going to do, I find it hard to believe, because we don’t even know what the tax plan is going to look like in its entirety,” Cohn said in an interview on Fox News’ “Sunday Morning Futures” program.