US Treasury Secretary pledges tax cuts for 'middle class'

US Treasury Secretary Steven Mnuchin on Thursday pledged a new round of tax cuts that he said would benefit ordinary Americans.

President Donald Trump, who faces a tough reelection bid in nine months, raised the possibility of tax cuts earlier this week, saying a proposal could be rolled out within three months.

Any new stimulus would add to 2017's budget-busting $1.5 trillion round of tax cuts, mostly aimed at corporations and the wealthiest taypayers.

"The president has asked us to start working on what we call tax 2.0," Mnuchin said told CNBC from the global economic forum Davos, Switzerland. "They'll be tax cuts for the middle class and also be looking at other incentives to stimulate economic growth." Trump needs a strong economy to boost his chances for a second term in the White House.

Mnuchin said the 2017 tax cuts had not caused runaway budget deficits and rejected claims that they would not pay for themselves ultimately, as he and other proponents claimed.