The House Republican tax bill will place a higher burden on those who earn more than $1 million a year nevertheless provide a break to everyone else, Treasury Secretary Steven Mnuchin said Friday.
Speaking a day after the GOP-led chamber passed the controversial reform measure, Mnuchin told CNBC that will the benefits will go to lower- along with middle-income people, along with even the rich will find benefits through some other provisions.
“The objective of the plan is actually to simplify taxes along with level the playing field,” he said on “Squawk Box.”
However, the plan has come under fire, particularly through those in high-tax states like completely new York, California along with completely new Jersey, which will get hit under a provision that will eliminates the deduction for state along with local taxes.
Opponents say that will measure is actually a stealth tax hike on the middle class.
“We’re getting the federal government out of subsidizing states. that will obviously does impact the high-tax states,” said Mnuchin, who added he is actually “sensitive to This particular issue” as he has lived in both completely new York along with California.
“For someone who makes 100, 0, 300,000 dollars in high-tax states, they will get tax cuts. People who make a million dollars or more, their taxes are going to go up on the personal side,” he said. “Having said that will, they’re going to get the benefit of a business tax reduction, which will be very, very Great for completely new York. They’re going to get the benefit of a pass-through reduction, which will be very Great for modest- along with medium-size businesses along with entrepreneurs.”