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Trump economic aide says new tax proposal could be unveiled this summer

Trump economic aide says new tax proposal could be unveiled this summer
© Aaron Schwartz

White House National Economic Council Director Larry KudlowLarry KudlowMORE said Wednesday that President TrumpDonald John TrumpPennsylvania Supreme Court strikes down GOP bid to stop election certification Biden looks to career officials to restore trust, morale in government agencies Sunday shows preview: US health officials brace for post-holiday COVID-19 surge MORE will unveil a new tax cut proposal later this year, "perhaps sometime later in the summer."

"I am still running a process of tax cuts 2.0. We're many months away. It will come out sometime later during the campaign," Kudlow said in an interview on CNBC.

CNBC asked Kudlow if the White House is considering a payroll tax cut and an expansion of the earned income tax credit. Kudlow did not provide any specifics about what might be included in a new tax proposal but said the goal is to "help middle-class economic growth."

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Kudlow also said he's met with Rep. Kevin BradyKevin Patrick BradyOn The Money: Biden, Democratic leaders push for lame-duck coronavirus deal | Business groups shudder at Sanders as Labor secretary | Congress could pass retirement bill as soon as this year Top Democrat: Congress could pass retirement bill as soon as this year Momentum grows for bipartisan retirement bill in divided Congress MORE (Texas), the top Republican on the House Ways and Means Committee, about this topic.

Kudlow has said for several months that the White House would unveil a "tax cuts 2.0" package as Trump runs for reelection. In August, Kudlow said that such a package could include lower individual tax rates, lower capital gains tax rates, changes for noncorporate businesses and tax relief for residents of high-tax states.

Republicans think they have a winning message on taxes. They argue that Trump's 2017 tax cut law has boosted the economy and that Democrats will hurt the middle class if they roll back the measure.

But Democrats think that their opposition to Trump's 2017 law and their proposals to raise taxes on the wealthy will help them in the presidential election. They noted that Trump's law has never been a huge hit with the public, while several proposals to tax the rich have garnered majority support in polls.