When the Trump administration laid out its one-page proposal for the “biggest tax cut in history” during a press conference in April, Treasury Secretary Steven Mnuchin and economic adviser Gary Cohn promised a cut for every American.
According to new reports, however, there’s at least one part of the White House that wants to raise taxes for some Americans.
Axios’ Jonathan Swan reported late Sunday that chief strategist Steve Bannon is advocating for a hike on the top tax bracket in order to finance a dramatic cut on middle and lower-income Americans.
Bannon reportedly wants to get the top tax bracket, which stands at 39.5% currently, into the 40s according to Axios. Currently, the top bracket applies to individuals making $418,400 or higher and couples making $US470,700 or higher.
While this may not please many large Republican donors or political action groups, it is a popular message for tax reform. According to a Morning Consult/Politico poll in May, 62% of Americans believe that “upper-income people” pay too little in taxes.
The Axios report also included other insights into the Trump administration’s push for tax reform, including:
- Gary Cohn is getting impatient: The National Economic Council director reportedly told people that if tax reform isn’t done this year, it probably won’t get done. With focus shifting to 2018 mid-terms after that, now may be the best time.
- Still want the corporate rate at 15%: Trump has promised to drop the rate to 15% from its current 35%.
- Doesn’t have to be revenue-neutral: Congressional Republicans have long pushed for a tax plan that doesn’t add to the deficit, but the White House does not seem as committed to that idea.
Extend tax cuts to 15 years: This would require some wiggling with the Congressional
Budget Office, but the administration reportedly wants to extend the cuts past a 10-year window.