President Donald Trump has debunked a reported plan by chief strategist Steve Bannon to create a new 44 percent top tax rate on Americans making more than $5 million a year as part of tax reform.
"No, that was not right," Trump told The Wall Street Journal in an interview Friday. "That was not a correct statement, no."
According to a full transcript of the interview obtained and published Tuesday by Politico, Journal editor-in-chief Gerard Baker asked Trump about Bannon's 44 percent plan.
The exchange was not included in the interview excerpts published by the Journal on Friday, Politico reported.
Gary Cohn, the president's chief economic adviser, also participated in the interview.
He does not support Bannon's plan, The Daily Beast reported.
Bannon's 44 percent idea was first reported by Axios.
The top U.S. tax rate is 39.6 percent. Trump reportedly has discussed a tax-reform plan that would only consist of three rates, with the maximum being dropped to 35 percent.
However, President Trump has said higher-income individuals could see their tax bills increase under any plan from the White House.
"I was with [New England Patriots owner] Bob Kraft the other night," Trump mused to the Journal. "He came to have dinner with me. He's a friend of mine.
"And as he left, he said: 'Donald, don’t worry about the rich people. Tax the rich people. You got to take care of the people in the country.'
"It was a very interesting statement," Trump told Baker. "I feel the same way."
Bannon's idea was also slammed by economist Larry Kudlow, who told Newsmax last week it would hurt the economy.
"Punishing successful people with higher tax rates is not a good policy," Kudlow said in an exclusive interview Wednesday. "It will not help the economy.
"It probably will hurt the economy," he added. "You don't get the revenues."
Kudlow said any tax plan should "go heavy on the deductions.
"If you want a populist message, don't raise the rate," said Kudlow, among several Trump campaign advisers on economic issues. "Get rid of the deductions.
"Steve Bannon is a dear friend," he added. "I admire him immensely, but I don't agree with him."
Congress is expected to introduce a tax-reform plan this fall.
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