Treasury Secretary Steven Mnuchin defended the Republican tax plan’s cut in tax rates for the wealthiest people in the country, saying it’s not quite a tax cut because so many deductions end.
Mnuchin said on “Fox News Sunday” the plan closes many popular deductions that the wealthy usually take advantage of, so they wouldn’t end up paying too much less in taxes.
“The reason why we are lowering the top rate is because we are getting rid of lots of lots of deductions,” he said, “and there's a big part of the country that has state and local taxes that we are getting rid of.”
Mnuchin was referring to a deduction for state and local taxes that’s included in the federal tax system. That deduction is popular among people who live in states with high property taxes, such as New York and California, and is frequently used by the wealthy.
Mnuchin said he’s extremely confident Trump will sign the bill into law by Christmas.
“I have no doubt. This is been a terrific process with the House and Senate working together in conference and there is a terrific bill that's going to get to the president to sign,” he said.
He said the tax cut would end up sparking huge economic gains.
We could have quarters of four, five and 6 percent growth. I don't think we will have it over 10 years and that wasn't what the president meant, but we will have periods of high growth growth. We've already seen it if it weren't for the hurricane,” he said.