US President Donald Trump said on Thursday he would delay the introduction of a new tax on foreign transactions until he gets a new cabinet, which he said he expected would be a “strong and stable one”.
Speaking at a White House news conference with Chinese President Xi Jinping, Mr Trump also said the US would use the existing tax system to raise money for the military.
“We have to get it right,” Mr Trump said.
“It is a complex problem.
But we have to do it.”US Treasury Secretary Steven Mnuchin said on Wednesday the administration was not looking to raise taxes on the rich, but to make them more equitable.”
I’m not going to talk about a tax increase,” he told reporters.”
Tax reform is one of the most important parts of the agenda for me.
It’s a big part of the plan.
And we’re not going do it until we have a president who has a strong, stable government.”
Mr Trump has been pushing to overhaul the US tax system, a major source of income for many of his supporters.
A proposed 1.5% tax on all income above $US1 million would raise more than $US400 billion a year, according to a Washington Post analysis of Congressional Budget Office (CBO) estimates.
The White House has said it would be an “incredibly good” tax and the tax was unlikely to generate any revenue because of its complexity.
However, the tax is being seen as an opportunity to raise more revenue, particularly as the cost of living is rising.
“This is a very important moment for our country.
We have a lot of money to spend.
And the only way we’re going to spend it is through revenue-generating reforms,” Mr Mnuchin told reporters, as the US economy began to recover from the financial crisis.”
What I’ve been saying is we have an opportunity, but we need a president that can be able to execute those reforms.”US tax rules have long been the source of friction between Democrats and Republicans.
Democrats argue that the tax, which was originally proposed by the late Senator Charles Grassley of Iowa, would disproportionately benefit wealthy Americans.
But Mr Mnuetz said the Trump administration had “an aggressive plan to reduce taxes for all Americans, and it has been working”.
“The president has been consistent on his commitment to lower taxes for hardworking Americans and we look forward to working with him to make this happen,” Mr Schumer said in a statement.
“In a time of fiscal challenges, we need to work together to keep the middle class and working families in our communities safe, secure, and healthy.”ABC/wiresTopics:world-politics,economy,government-and-politics