US Treasury's Mnuchin: Can't guarantee tax cut for entire middle class

WASHINGTON (Reuters) - U.S. Treasury Secretary Steven Mnuchin on Sunday 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.

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.

A report on Friday from the non-profit Washington-based Tax Policy Center 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.

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.

RELATED: 10 things every taxpayer should know about the IRS

0 PHOTOS
See Gallery
HIDE CAPTION
SHOW CAPTION
of
SEE ALL
BACK TO SLIDE

"The objective of the president is that rich people don't get tax cuts and we are perfectly comfortable, as we go through this process, we will explain to the American public how this works," Mnuchin said.

White House Budget Director Mick Mulvaney told CNN's "State of the Union" program: "This really is about the middle class and the corporate tax rate, for the president."

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.

Mnuchin said the administration hoped to have the tax overhaul legislation passed in December.

(Reporting by Lucia Mutikani and Julia Harte; Editing by Caren Bohan and Paul Simao)

Filing an Income Tax Extension

If you aren't able to complete your federal tax return by the April deadline, find out how and when to file for an IRS extension with these tips from TurboTax.

Read More

Brought to you by TurboTax.com

What is a CPA (Certified Public Accountant)?

A CPA (Certified Public Accountant) is an accounting professional licensed and credentialed by a state or territory to offer accounting services, including tax preparation, to the public.

Read More

Brought to you by TurboTax.com

How to File an Amended Return with the IRS

If you've made an error on a tax return you already filed or simply come across new information, such as a tax deduction or credit you now realize you qualify for, file an amended tax return to make the correction. The Internal Revenue Service (IRS) knows the tax code is complex, and that people make mistakes. The process for filing an amendment is straightforward. Simply file Form 1040X, Amended Tax Return, along with the corrected or additional documents you did not originally file with your return.

Read More

Brought to you by TurboTax.com

2018 Tax Reform Impact: What You Should Know

Congress has passed the largest piece of tax reform legislation in more than three decades. The bill went into place on January 1, 2018, which means that it will affect the taxes of most taxpayers for the 2018 tax year.

Read More

Brought to you by TurboTax.com
Read Full Story
Your resource on tax filing
Tax season is here! Check out the Tax Center on AOL Finance for all the tips and tools you need to maximize your return.

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.