Trump says that his plan will simplify the code by making it to where almost 50 percent of Americans no longer pay a penny of federal income tax. There would be more “tax eaters” in America than taxpayers, at least in terms of the federal income tax.
There were elements of Trumpian flair: Those in the zero-percent tax bracket could send a form to the Internal Revenue Service saying “I Win”.
We’ll have to do some further digging on Trump’s proposals, but at first glance they certainly seem geared toward changing the current structure in such a manner as to empower the individual consumer – while extending lower tax rates on business income to sole proprietors and other small businesses.
It would lower the tax rate on businesses to 15% from 35%.
He vowed to eliminate the so-called death tax, formally known as the estate tax, and get rid of the “carried interest” loophole that lets private equity and hedge fund managers pay a lower tax rate than other people.
GOP presidential frontrunner Donald Trump unveiled his tax plan Monday. Because our middle class…is being absolutely decimated…. “I’m a man of great common sense”.
At the same time, Trump proposed ending or reducing most deductions and loopholes for the wealthiest taxpayers, the aspect that he said would cost him money.
Mr Trump said: “As an example I have millions of dollars overseas”.
But while this is what Trump said, it’s pretty clearly not what his plan actually does. “I don’t want to have certain people on Wall Street getting away with paying no tax”.
Donald Trump’s oft-repeated ambitions to raise taxes on “hedge fund guys” would amount to a tax rate increase of 1.2 percentage points, his tax reform outline released Monday shows.
Income from $30,000 to $100,000 is assessed a flat 5 percent tax.
All of that means Trump has probably taken advantage of every loophole, deduction and tax break in the book to reduce his tax burden – the same ones corporations and the special interests Trump decries also use.
Trump’s plan is not much different in general structure than former Florida Gov. Jeb Bush’s proposal, though Trump’s has lower rates.
Elimination of some deductions, like the one for state and local taxes, could adversely affect people in high-tax states such as California, said Edward McCaffery, professor of law, economics and political science at USC.
“You earned and saved that money for your family, not the government”, Trump said. Marco Rubio’s plan also contains middle-class tax relief, but it eliminates taxes on capital gains, dividends and estates, which would result in what some experts describe as a hugely regressive, revenue-draining tax cut. To some extent that’s inevitable: Because the rich pay a disproportionate share of taxes, they also benefit disproportionately from nearly any major tax cut.
Throughout his campaign, Trump has sought to play to populist instincts, including by warning wealthy investment managers that they will face tax hikes.