A report circulated the media and stated that White House advisor Steve Bannon had proposed a different strategy to lower taxes for middle-income citizens. The measure in question concerned tax increases for members of high-tier social stratification. However, Treasury Secretary Steven Mnuchin has recently claimed that he was never presented with this option.
Mnuchin Claimed That He Never Heard of Tax Increases for Wealthier Americans
Trump administration is currently working on a new tax plan. They hope the upcoming changes would stand for a stronger national economy than before. With the deadline of the month of September approaching, there are numerous theories regarding this plan. One of the most recent such scenarios had an official report at its basis and proposed a tax hike for wealthier citizens. So far, few details accompany the official description coming from the administration.
The key goals of the next tax plan are a reduction of income taxes from 39.6% to 35% and a lower average for taxes aimed at middle class. The primary strategy is to reduce the present seven tax brackets to only three, namely 10%, 25%, and 34%. If Bannon’s idea comes into effect, it will help the system elevate through 40% tax increases for those who earn at least $420,000 a year.
However, Mnuchin denied such a report that revealed Steve Bannon supports changes for high-tier social stratum. He made it clear that such a proposal is not up to negotiations.
“It’s another example of a false leak that’s been reported.”
Republicans Have Many Challenges Ahead before They Can Finish a Comprehensive Tax Plan
Numerous analysts expect the deadline to be postponed until early 2018. That’s because the Congress is trapped in many internal controversies. For instance, members have to finish an ongoing project regarding the replacement of the Affordable Care Act before even considering the revenue to offset reductions. Republicans are still debating what exactly to include in this bill let alone reaching a final draft.
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