The possibility of the GOP tax cut plan actually increasing taxes would only impact “a few people at the very top,” said Kevin Hassett, economic advisor to President Donald Trump.
“They’ve got plenty of resources,” said the Council of Economic Advisors chairman, referring to people who make more than $1 million in high-tax states, such as New York and California. They may find themselves with higher, not lower tax bills, he acknowledged. “I don’t think there are very many ‘sharply raised’ people in the distribution tables.”
The reason that tax bills may go up for some stems from a part of the GOP tax reform packages that eliminate the allowance for taxpayers to deduct state and local taxes on their federal returns.
