The White House has started work on a second round of tax cuts , Treasury Secretary Steven Mnuchin said Thursday.
“The president has asked us to start working on what we call tax 2.0, and that will be additional tax cuts,” Mnuchin told CNBC during an interview at the World Economic Forum in Davos. “They’ll be tax cuts for the middle class, and we’ll also be looking at other incentives to stimulate economic growth.”
More tax cuts even though the deficit for 2019 calendar year has grown to over $1 trillion, Mnuchin maintained that the tax cuts would pay for themselves.
He did concede that the level of spending needs to be curtailed. There’s no question that we need to slow down the rate of growth of government spending, because we cannot sustain these deficits growing at these levels.
Under the plan the administration will advance this time, the cuts will be more targeted to the middle class.
“The president feels that we need to continue the incentives to the middle class, as their taxes have been too high historically,” Mnuchin said. “We’ve had big tax cuts already, and that’s an area that we’ll continue to look at.”