Trump budget plan will not cut Social Security, Medicare -Mnuchin

WASHINGTON, (Reuters) - U.S. President Donald Trump’s first budget proposal will spare big social welfare programmes such as Social Security and Medicare from any cuts, Treasury Secretary Steven Mnuchin said in an interview broadcast yesterday.

Mnuchin said Trump would use a major policy speech to a joint session of Congress tomorrow night to preview some elements of his sweeping plans to cut taxes for the middle class, simplify the tax system and make American companies more globally competitive with lower rates and changes to encourage U.S. manufacturing.

Speaking on Fox News Channel’s “Sunday Morning Futures” programme, Mnuchin, who has acknowledged that tax reform is his top policy priority, said the budget plan would not seek cuts to federal benefits programmes known as “entitlements.”

“We are not touching those now. So don’t expect to see that as part of this budget, OK,” Mnuchin said of the programs, according to a transcript provided by Fox. “We are very focused on other aspects and that’s what’s very important to us. And that’s the president’s priority.”

Mnuchin said Trump “will be touching on tax reform” as part of his speech, which is not an official “State of the Union” address.

The plan will reduce the number of tax brackets for individuals and offer a “middle income tax cut,” Mnuchin said. On the business side, Trump wants to “create a level playing field for U.S. companies to be able to compete in the world.”