Top earners will not see their tax bill fall under the tax plan being worked out by Trump administration and lawmakers, Treasury Secretary Steve Mnuchin said Tuesday.
The Trump administration has repeatedly said that its plans to reform the tax code would not cut income taxes for top earners. Instead, the administration says it is focused on cutting income taxes for the middle class and businesses.
Mnuchin said the top tax rate may be cut but that this would be offset by the loss of deductions, particularly deductions for state taxes.
“In the high tax states, there will not be a tax decrease,” Mnuchin said.
He described the plan not to cut taxes for the wealthy as “the Mnuchin rule.”
Mnuchin was speaking at CNBC and Institutional Investor’s Delivering Alpha conference.