Trump’s Tax Push Begins
The best test for judging any Trump administration tax plan is the Mnuchin test — the standard that President Trump’s own Treasury Secretary, Steven Mnuchin, laid out a few months ago:
“Any reductions we have in upper-income taxes will be offset by less deductions, so that there will be no absolute tax cut for the upper class. There will be a big tax cut for the middle class, but any tax cuts we have for the upper class will be offset by less deductions that pay for it.”
I’ll repeat the key phrase for emphasis: “there will be no absolute tax cut for the upper class.”
Mnuchin was right to make this commitment. While middle-class incomes have stagnated, the top 0.01 percent of earners have had their average inflation-adjusted income roughly quadruple to $11.3 million since 1980. Their taxes have fallen, too. There’s no justification for cutting those taxes further.
Yet on Wednesday Trump, with Mnuchin as the pitch man, proposed precisely that, violating Mnuchin’s own standard.