President Donald J. Trump's government is having a bumpy time when it comes to pushing its tax plan to the American public. The top Presidential economic advisers know that Democrats will try to poison the public's mood against the tax package, but they are seemingly unable to do anything against it. To make it worse, Gary Cohn, the chief economic adviser of the White House, was loath to certify to questioning media personnel whether the initiative will finally end up the middle class's universal tax cut. He declined to guarantee anything when questioned about whether the middle class will end up paying more.
Tax burden may become higher
A report published by the Tax Policy Center, a non-partisan body, seems to confirm the worst case scenarios of the critics. The report said that the proposed plan will benefit solely the cream one percent. Others will get only minimal relief. For some, the tax burden may also become higher. Kevin Brady, an elected Republican from Texas, and who is also the Chairman of House Ways and Means Committee strongly countered the findings of the Tax Policy Center. He termed them as misleading, biased, and also unfounded.
Even if the assertions of Brady is true, the lack of details about the taxes means that the debate is being shaped by the report. Steve Mnuchin, the Treasury Secretary, like Cohn, was unable to provide guarantees that a few middle-income earners may not be burdened with tax increases. To deflect questions, he said that it is the Trump administration's objective that the middle class in its entirety enjoys a tax cut. He claimed that the government is going over the details. When questioned why he cannot provide reassurances, he said that guarantees cannot be given as taxes vary from one taxpayer to another.
Paying for tax cuts
More damning is that Mnuchin has already admitted that the plan brings to the wealthy considerable benefits. These involve the estate tax and death tax. He said that the people subject to such a tax will not be taxed twice as they are being now. This will enable the inheritance of family businesses. There is also the problem of paying for the tax. Cohn said that the tax cuts will be compensated by higher economic growth. Mnuchin was even more optimistic, claiming that the economic growth will yield deficit narrowing surplus. He failed, however, to back up his claims.