Money

Gary Cohn says with an extra $1,000 in tax savings a family could buy a new car and renovate a kitchen

Economic advisor Gary Cohn said Thursday that an American family could save $1,000 under the Republicans' proposed tax reform plan, and it could use that money to pay for a new car or a kitchen.

"If we allow a family to keep another thousand dollars of their income, what does that mean? They can renovate their kitchen, they can buy a new car, they can take their family on vacation, they can increase their lifestyle," he said. "That's what our tax plan has to do."

Some critics are seizing on Cohn's assertion.

Cohn is also under fire for acknowledging that he "can't guarantee" taxes wouldn't go up for some middle-class families.

The advisor said that "a typical family earning $100,000 with two children that has been a standard deductor ... can expect a tax cut of about $1,000."

The average American family makes $74,000 a year before taxes, or about $26,000 less than that, according to the Bureau of Labor Statistics. The median American family income is only about $55,000.

The GOP plan is expected to primarily benefit corporations as well as the wealthiest Americans, which includes various members of the White House and the Cabinet. The estate tax repeal alone would save Donald Trump $564 million, Wilbur Ross $545 million, Betsy DeVos' father-in-law Richard $900 million, and Linda McMahon $250 million, reports Bloomberg.

In fact, in several ways, the president himself stands to benefit tremendously.

Correction: This story revises a previous version to delete the incorrect assertion that Cohn said the typical American family earns $100,000 a year. He actually said a typical American family that earns $100,000 would get $1,000 under the GOP tax proposal.

Don't miss: