Treasury nominee gives peek at new tax plan
President-elect Donald Trump's nominee to head the Department of Treasury gave a glimpse of some of the tax changes Americans might see in the next few years.
"We're going to have the most significant middle-income tax cut since Reagan," declared Steve Mnuchin, Trump's nominee for treasury secretary.
He said he envisions a tax code with a simplified tiered system of 12, 25 or 33 percent, depending on income levels.
Most deductions for high-income earners would be removed, although deductions for mortgage interest payments would remain available. There could also be a cap for itemized deductions for joint filers at $200,000.
Accountant Lawrence Lucarelli says the mortgage interest deduction is one of the largest, most common deduction people take. He says tinkering with it could affect the economy.
"We could probably see the housing market slow," Lucarelli says. "We're hoping it results in an overall tax decrease. That's the whole idea. Whether that plays out, how it's going to work out, nobody's really sure."
Syosset resident Stephen Ruderman says he would rather see Trump focus on income people get from interest and stock earnings.
"They shouldn't be paying a lower tax rate when the rest of us pay a higher tax rate for working," Ruderman says.
Under Trump's plan, he would also cut the business tax rate from 35 percent to 15 percent, which Mnuchin argues would spur economic growth.