Republican presidential front-runner Donald Trump on Monday promised to simplify the USA tax code and eliminate deductions and loopholes for special interest groups if he becomes president at the November, 2016 election. This is what Donald Trump, the iconoclastic frontrunner for the Republican nomination, did on the morning of September 28th, when he became the second Republican candidate to publish a tax plan, following Jeb Bush’s effort earlier this month.
The low-income: Trump is proposing a 0% tax rate for singles earning less than $25,000 and couples with incomes below $50,000. “Trump has spent all summer raising expectations about his campaign, so we could never have imagined just how really, really, really fantastic his tax plan would be,” Jindal campaign manager Timmy Teepell said in a statement.
The plan burnishes Mr Trump’s Republican credentials by giving high earners whacking tax cuts.
“We will either renegotiate it or we will break it”, Trump said, “because, you know, every agreement has an end”.
Eliminate estate tax. “The death tax punishes families for achieving the American dream”, Trump’s plan says. Obama proposed a one-time tax holiday rate of 14 percent and then a 19 percent tax rate on those earnings going forward.
In classic Trump fashion, the real estate mogul compared himself to supermodels. Chances are it would be considerably less than the $17.7 billion that Treasury estimates would be raised over 10 years if investment managers had to pay a 39.6% rate on their carried interest. But I will tell you this, I do have some differences.
Trump’s plan borrows heavily from the GOP embrace of supply-side economics, which holds that lower tax rates generate more economic activity and eventually more tax revenue from that greater activity.
Trump remains in first place in the Washington Examiner’s presidential power rankings.
The reason most of these Americans don’t pay taxes is because they receive credits, including those that promote work such as the Earned Income Tax Credit, said Roberton Williams, senior fellow at Tax Policy Center. They won’t be doing it. But here’s what we have to do.
And when pressed on his plan for repealing and replacing Obamacare, Trump said he would put in place a plan to ensure universal healthcare coverage – with the government footing the bill when necessary – and he pledged to “make a deal with existing hospitals to take care of people”.
How is this substantively different than the inclinations of Hillary Clinton or Bernie Sanders?
Trump said he would solve a longstanding problem with offshore profits that US companies park overseas, estimated by experts to be worth at least $2.3 trillion. “So I’d say that’s a fine change”. Well I say it’s time to start explaining.