WASHINGTON (dpa-AFX) - President Donald Trump has announced that the country's middle class can expect a tax cut next year.
'We are working on a tax cut for the middle-income people that is going to be very, very inspirational,' Trump told Republican lawmakers' annual retreat in Baltimore Thursday. 'It's going to be something that I think it's what everyone's really looking for,' he told the Congressmen.
'It will be a very, very substantial tax cut for middle-income folks, who work so hard' according to the President, who is seeking a second term in 2020.
Trump, however, did not specify the extent of advantage that the American middle class tax payer will benefit from it. His strategic announcement targeting the key US vote bank comes a day after deciding not to cut the tax on capital gains and payroll taxes.
In July, House Ways and Means Committee Chairman Richard Neal had expressed strong opposition to Trump Administration indexing capital gains taxes to inflation.
'After spending more than $2 trillion on tax cuts for the wealthiest Americans and big corporations, President Trump and congressional Republicans now want to give even more benefits to people at the very top,' the Representative for Massachusetts said in a statement.
If the Trump Administration unilaterally changes the capital gains tax structure, it wouldn't just be bad policy, it would be executive overreach,' according to him.
Insisting that tax legislation must originate in the House Ways and Means Committee, Neal urged Trump not to circumvent Congress to alter the tax code.
He warned that such an action would undermine the government's system of checks and balances, worsen the national debt, and 'only help the most well-off and well-connected' in the country.
Copyright RTT News/dpa-AFX
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