Mnuchin says White House will consider another tax-cut package next year

Treasury Secretary Steven Mnuchin said Monday that the Trump administration will consider proposing a new tax-cut package next year, while arguing that the economy is strong.

“We’ll be looking at tax cuts 2.0, something that will be something we’ll consider next year,” Mnuchin told reporters, according to Politico. “But right now, the economy is in very, very good shape.”

{mosads}Mnuchin’s comments are in line with comments that President Trump and others in his administration have also said in recent weeks. 

White House economic adviser Larry Kudlow said last month that a new tax-cut package could be rolled out before the 2020 election and could include elements such as lower individual tax rates, lower capital gains rates, changes for businesses other than corporations and relief for residents of high-tax states.

Trump last month tweeted that “if Republicans take back the House, and keep the Senate and Presidency, one of our first acts will be to approve a major middle income Tax Cut! Democrats only want to raise your taxes!”

The comments come amid some warnings from Wall Street that the U.S. could be heading toward a recession. Members of the administration, however, have maintained that the U.S. economy continues to be strong.

Republicans think that more tax cuts could help the U.S. economy in the long run and could be beneficial for Trump’s reelection chances. But the tax-cut law that Trump signed in December 2017 never became overwhelmingly popular with the public. Americans disapprove of the legislation by a 39 percent to 34 percent margin according to a RealClearPolitics average of polling from April and May.