Skip to content
Subscriber Only

‘Mnuchin Rule’ Against Wealthy Tax Cuts Comes Back to Bite Him

  • Secretary says legislative debate could affect tax outcome
  • Mnuchin reiterates Trump’s intent is middle-income tax cut
Bloomberg business news

Why Corporate Tax Reform Might Need a Plan B

A pledge not to give the wealthiest Americans an absolute tax cut is coming back to haunt Treasury Secretary Steven Mnuchin.

During congressional hearings this week, Democrats pressed Mnuchin repeatedly about his late November statement that President Donald Trump’s tax plan would benefit middle-class taxpayers, not the highest earners -- an assurance that some quickly labeled “the Mnuchin Rule.” In response, he stopped short of repeating the pledge -- and wouldn’t say whether Trump would refuse to sign tax legislation that would make top earners the biggest winners.