The Republican tax plan isn’t designed to help rich New Yorkers, but Wall Street can certainly look forward to some advantages, said Treasury Secretary Steven Mnuchin.
“There’s a lot of benefit to the New York economy to lowering the corporate tax to 20 percent,” Mnuchin said in an interview on Fox News on Friday. “That’s a huge boom for the financial services industry—they can hire more people, they can pay more people, they can create more jobs, they can be competitive.”
Number crunching by the Treasury Department shows millionaires in high-tax states, which include President Donald Trump’s home state of New York, will get a tax increase, Mnuchin said. That’s partly because of a change in the deduction for state and local income taxes, which would offset tax cuts, including a proposal to lower the corporate rate to 20 percent from 35 percent. The House bill would eliminate the deduction for state and local income and sales taxes, while preserving the property tax deduction up to $10,000. The Senate plan fully repeals the break.
Mnuchin has been traveling across the country advertising the tax plan as a way to lift up America’s middle class—a message that’s being received with some doubts. About 59 percent of American voters believe the tax plan will favor the rich over the middle class, according to a nationwide Quinnipiac Poll taken Nov. 7-13 and published this week.