Mnuchin: Republicans Are Raising Taxes on 'Rich People in High-Tax States'

By Susan Jones | November 17, 2017 | 10:58am EST
Treasury Secretary Steve Mnuchin (Photo: Screen grab/Fox News)

(CNSNews.com) - Under the Republican tax plan passed by the House on Thursday and now making its way through the Senate, some Americans will pay more in taxes.

"There will be people who make more than a million dollars in high-tax states that will be paying more, and as the president has said, this is not a tax plan to cut taxes for rich people. This is a tax plan to make businesses competitive and give middle-income taxpayers (a tax cut)," Treasury Secretary Steve Mnuchin told Fox News on Friday morning.

Mnuchin said he's "run lots of numbers" for people who earn $100,000, $200,000 and $300,000 and live in New York. "And the vast majority of those people will get tax cuts."

But not all of them.

 

Anchor Bill Hemmer objected: "But this is a Republican majority in the House and in the Senate and the White House. And you're admitting that for some Americans, they will pay more in taxes. Is this what the American people have waited a generation for?" Hemmer asked.

"Just to be clear, what we're doing is getting rid of the state and local tax deduction, which is a loophole for high-tax states," Mnuchin said. "That's the reason why New York, California, and others have taxes as high as they are because the federal government is subsidizing those taxes. And for most Americans, the vast number of Americans that don't have high-tax states, it's not fair that they're subsidizing a few states.

"So again, the people's taxes who are going to go up are the rich people in high-tax states. But again, there is a lot of benefit to the New York economy of lowering the corporate rate to 20 percent," Mnuchin said.  "That's a huge boom for the financial services industry. They can hire more people, they can pay more people, they can create more jobs. They can be competitive. So there are offsets in this that will absolutely help the high-tax states as well."

Hemmer also challenged Mnuchin on the Republican argument that lowering the corporate tax rate will send companies running back to the United States from overseas.

"Here's my issue with that whole claim," Hemmer said. "I don't see a lot of CEOs coming out and saying, ‘Yeah, this is great, we can't wait. We got operations overseas, and we can't wait to bring the money back.’ Where is that voice?"

"I've heard that voice, whether it's Apple or other companies," Mnuchin said. "We have lots of people who are lined up in support of this. The Business Roundtable, financial services. There is a lot of excitement about this plan. People understand this is all about making American business competitive. If we can have our business compete on a level playing field, they can outperform anyone in the world."

Mnuchin said he's "confident" that the plan will pass the Senate.

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