Tony Sayegh, Assistant Secretary of the Treasury for Public Affairs, told FOX Business the GOP tax plan will benefit middle income families and small businesses.
The plan would create a new special rate for business income and put high-wage earnings at a disadvantage, according to the Wall Street Journal.
â€œLook, if youâ€™re a small business owner, and youâ€™re creating jobs, and youâ€™re investing in your company, and youâ€™re increasing your workerâ€™s paychecks, you deserve to have a pass-through rate that is lower than the individual rate. And thatâ€™s what weâ€™re trying to address, on the pass-through side and the corporate side,â€ Sayegh told Maria Bartiromo on Mornings with Maria on Monday.
In Sayeghâ€™s opinion the big debate will be centered on deduction eliminations.
â€œThere will be [a] fight around deduction elimination, no doubt about it. Weâ€™re trying to scrap almost every deduction except for mortgage and charitable, and of course, weâ€™re going to protect retirement savings but everything else -- the state and local tax -- we obviously understand that we need to simplify this code and also have to make it fairer,â€ Sayegh said.