September 12, 2019

Trump Says He Plans to Unveil Middle-Class Tax Cut in Next Year
(Bloomberg) -- President Donald Trump said Thursday that he’s planning a tax cut directed at the middle class that will be announced in the next year.“It will be a very substantial tax cut,” Trump told congressional Republicans at a retreat in Baltimore. He said the tax cut would be “very, very inspirational” without providing details.Trump spoke a day after deciding against cutting the tax on capital gains by indexing gains to inflation. That decision was announced late Wednesday after a meeting earlier between the president and his economic advisers, who discussed whether to move ahead with the tax break.The administration has also put off the idea of a possible cut in payroll taxes, Treasury Secretary Steven Mnuchin told CNBC earlier Thursday. Mnuchin said that Trump was focused instead on a second round of proposed tax cuts.But a Trump-backed tax cut would face an a near-impossible battle in Congress in advance of the 2020 elections. Constitutionally, tax legislation must originate in the House, which Democrats currently control. They are unlikely to back any legislation that could give Trump a victory during the presidential election campaign.Key Democrats in Congress, including House Speaker Nancy Pelosi and House Ways and Means Committee Chairman Richard Neal, have said they could consider cuts to levies on the middle class, but those cuts would have to be offset with higher taxes on the wealthy.That trade-off -- if Trump and Democrats could compromise -- could cause no-new-tax Republicans to balk, making agreement nearly impossible in a divided government.Trump last month floated the idea of indexing capital gains to inflation or cutting payroll taxes as a way to jolt the U.S. economy, which has shown warning signs of a slowdown. But he later said that cutting capital gains taxes would be seen as “somewhat elitist” because it would benefit the wealthy.Most of the benefits of indexing would go to high-income households, with the top 1% receiving 86% of the benefit, according to estimates in 2018 by the Penn Wharton Budget Model. The policy could reduce tax revenue by $102 billion over a decade, the model found.This isn’t the first time the White House has floated a tax cut when facing political headwinds. Last fall, ahead of the midterms where Republicans ultimately lost their majority in the House, Trump suggested he would cut taxes for middle-earners by 10%.The tax cut announcement came as a surprise to administration officials and Trump’s allies in Congress. That plan was never released.Again in August, Trump said “a lot of people” would like a cut in payroll taxes, but then said that a reduction isn’t needed. A day later, he said he was still open to a payroll tax break and cutting taxes for investors by indexing capital gains taxes to inflation, a move some of his advisers think he could do without Congress.And late in 2017, as the Republican tax overhaul was taking shape and criticism arose that it would favor the wealthy and corporations, Trump promised relief for the middle class. But that did not make it into the final legislation.(Updates with prospects for new tax cut in Congress, starting in fifth paragraph.)To contact the reporters on this story: Jordan Fabian in Washington at jfabian6@bloomberg.net;Laura Davison in Washington at ldavison4@bloomberg.netTo contact the editors responsible for this story: Alex Wayne at awayne3@bloomberg.net, John Harney, Justin BlumFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Related Stories
Latest News
Top news around the world
Coronavirus Disease

Coronavirus disease (COVID-19) is an infectious disease caused by a newly discovered coronavirus.

Most people infected with the COVID-19 virus will experience mild to moderate respiratory illness and recover without requiring special treatment. Older people, and those with underlying medical problems like cardiovascular disease, diabetes, chronic respiratory disease, and cancer are more likely to develop serious illness.

Around the World

Celebrity News

> Latest News in Media

Watch It
In first solo ‘Call Her Daddy’ show, host Alex Cooper drags ‘Suitman’ Peter Nelson | Page Six News
May 28, 2020
bbr2puPIWn0
Billie Eilish on undressing in new video: ‘You’ve never seen my body’ before | Page Six News
May 28, 2020
Qfdwm6Q--_0
Scott Disick and Sofia Richie break up after nearly 3 years together | Page Six Celebrity News
May 27, 2020
J2VeLS4nX24
Gabrielle Union on 'America's Got Talent' Toxicity, Why She Doesn't Regret Speaking Out
May 27, 2020
2KaefM_QT-Q
'Brockmire' Stars Amanda Peet, Hank Azaria Reflect on Series Finale and Onscreen Chemistry
May 26, 2020
XcG_gLdG-Gk
Marcia Gay Harden talks 'Barkskins," "Moxie," and Working With Amy Poehler
May 26, 2020
Gae-emoK8A0
Kim Kardashian Applauds Ex-Inmate for Mixtape Produced in Prison | TMZ
May 28, 2020
Z_E2N-3b0lw
Victoria Beckham FINALLY Smiles | TMZ
May 28, 2020
kYOuDAgx4mQ
Khloe Kardashian To Sell Calabasas Mansion For $19 Million | TMZ
May 28, 2020
vrkkTFi6WhY
Cardi B Shuts Down Hater Who Says Daughter Kulture Doesn't Like Her | E! News
May 28, 2020
_7VOB42lwKk
How Camila Cabello Copes With Crippling OCD & Anxiety | E! News
May 28, 2020
PhSz2PNBSvI
Youtuber Explains Rehoming Autistic Adopted Son | E! News
May 28, 2020
NO6JJpAyNYo
TV Schedule
Late Night Show
Watch the latest shows of U.S. top comedians

Sports

Latest sport results, news, videos, interviews and comments
Latest Events
08
Mar
ITALY: Serie A
Juventus - Inter Milan
08
Mar
ENGLAND: Premier League
Manchester United - Manchester City
08
Mar
ENGLAND: Premier League
Chelsea - Everton
08
Mar
SPAIN: La Liga
Real Betis - Real Madrid
08
Mar
ITALY: Serie A
AC Milan - Genoa
07
Mar
ENGLAND: Premier League
Burnley - Tottenham Hotspur
07
Mar
ENGLAND: Premier League
Arsenal - West Ham United
07
Mar
SPAIN: La Liga
Barcelona - Real Sociedad
07
Mar
ENGLAND: Premier League
Liverpool - Bournemouth
07
Mar
SPAIN: La Liga
Atletico Madrid - Sevilla
01
Mar
SPAIN: La Liga
Real Madrid - Barcelona
01
Mar
ENGLAND: Premier League
Everton - Manchester United
01
Mar
ENGLAND: Premier League
Tottenham Hotspur - Wolves
01
Mar
SPAIN: La Liga
Espanyol - Atletico Madrid
01
Mar
ITALY: Serie A
Cagliari - Roma
29
Feb
ENGLAND: Premier League
Watford - Liverpool
29
Feb
ITALY: Serie A
Napoli - Torino
29
Feb
ENGLAND: Premier League
Bournemouth - Chelsea
24
Feb
ENGLAND: Premier League
Liverpool - West Ham United
23
Feb
ENGLAND: Premier League
Arsenal - Everton
23
Feb
ENGLAND: Premier League
Manchester United - Watford
23
Feb
ITALY: Serie A
Roma - Lecce
23
Feb
SPAIN: La Liga
Atletico Madrid - Villarreal
22
Feb
SPAIN: La Liga
Levante - Real Madrid
22
Feb
ITALY: Serie A
Fiorentina - AC Milan
22
Feb
ENGLAND: Premier League
Leicester City - Manchester City
22
Feb
ITALY: Serie A
Spal - Juventus
Find us on Instagram
at @feedimo to stay up to date with the latest.
Featured Video You Might Like
0vmRhiLHE2U JFCZUoa6MYE UfN5PCF5EUo 2PV55f3-UAg W3y9zuI_F64 -7qCxIccihU pQ9gcOoH9R8 g5MRDEXRk4k tudKp5Vhs3k iwWHibhssSo kQr0XHPbICM 5NeCb7JxaRk
Copyright © 2020 Feedimo. All Rights Reserved.