Wednesday, June 14, 2017

Tax plan

Robert Reich

Treasury Secretary Steve Mnuchin has promised so often that Trump’s tax plan won’t cut taxes on the rich that Senators have come to call it the “Mnuchin rule.”

Today, at a Senate hearing, Mnuchin reversed himself.

MNUCHIN: Our focus is on getting tax reform done. To get tax reform done, it's my job to figure out what meets the president's objective, what meets the House and the Senate so that we can get something signed into law. And there will be compromises along the way on this. So, yes, you made it a rule, I didn't make it a rule. I was honored that you named it —

SENATOR RON WYDEN: No, no, no, Mr. Secretary, you took great pride as we repeated what you said and you again, 10 days ago, referenced the original comment by saying it on CNBC. You are the one who has walked it back. Nobody else has walked it back. You are the one who walked it back.

MNUCHIN: I have walked it back from my CNBC interview. ... But we've had the opportunity to talk about this several times. And again, I look forward to coming to your office and talking about tax reform. And again, tax reform, at the end of the day, the president will evaluate what's on his desk and he'll make a decision whether he wants to sign it or not. My objective is to deliver tax reform so that we can get the economy back going."

Hello? Earth to Mnuc: Cutting taxes on the wealthy won't "get the economy back going." It will explode the deficit, widen inequality, and hurt the economy because the rich spend a far smaller proportion of their yearly income than the middle class and poor – resulting in inadequate purchasing power.


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