$100 billion handout to the super-rich: Trump considers more tax cuts

Trump may bypass Congress to pass a new round of tax cuts

Former Goldman Sachs banker and now US Secretary of the Treasury, Steven Mnuchin has told reporters at the finance ministers meeting in Buenos Aires ahead of the G20 summit later this year that the Trump administration is considering another round of huge tax cuts for the super wealthy.

The cuts would remove around $100 billion from federal revenue; they have already been criticised by economists around the world for the potential damage they could do to the still-growing US budget deficit.

Some have also raised the obvious conflict of interest: the cuts would save Trump, the 121st richest person in America according to Forbes, a considerable amount of money. And that's not to mention the benefits to the Trump Organisation, his business holding company, and many of his family members who are also extremely wealthy.

Mnuchin stated that he was considering bypassing Congress to get the tax cuts through, saying "if it can't get done through a legislation process, we will look at what tools at Treasury we have to do it on our own and consider that".

This controversial move has not gone unnoticed by top Democrats. Senator Chuck Schumer (NY), the minority leader in the Senate said; "At a time when the deficit is out of control, wages are flat and the wealthiest are doing better than ever, to give the top one percent is an outrage and shows the Republicans' true colours." He also stated his opposition to passing the tax cuts without Congressional support, saying "everyone knows this must be done by legislation".

Senator Schumer, likely to become the majority leader following the midterms later this year, may well have a battle on his hands if this precedent follows. If Trump and his cabinet secretaries show themselves to be willing to bypass democratic institutions and rule by decree, which they may do if the GOP looses one or both Houses of Congress, there will be a whole new level of animosity directed towards the president and his administration, one that will last the remainder of his term.