TAX REFORM THAT WILL MAKE AMERICA GREAT AGAIN

Donald Trump Official Campaign Site ^ | 9/28/2015 | Donald Trump

[DannyTN]

The Goals Of Donald J. Trump’s Tax Plan

Too few Americans are working, too many jobs have been shipped overseas, and too many middle class families cannot make ends meet. This tax plan directly meets these challenges with four simple goals:

1. Tax relief for middle class Americans: In order to achieve the American dream, let people keep more money in their pockets and increase after-tax wages. Simplify the tax code to reduce the headaches Americans face in preparing their taxes and let everyone keep more of their money.
2. Grow the American economy by discouraging corporate inversions, adding a huge number of new jobs, and making America globally competitive again.
3. Doesn’t add to our debt and deficit, which are already too large.

The Trump Tax Plan Achieves These Goals

1. If you are single and earn less than $25,000, or married and jointly earn less than $50,000, you will not owe any income tax. That removes nearly 75 million households – over 50% – from the income tax rolls. They get a new one page form to send the IRS saying, “I win,” those who would otherwise owe income taxes will save an average of nearly $1,000 each.
2. All other Americans will get a simpler tax code with four brackets – 0%, 10%, 20% and 25% – instead of the current seven. This new tax code eliminates the marriage penalty and the Alternative Minimum Tax (AMT) while providing the lowest tax rate since before World War II.
3. No business of any size, from a Fortune 500 to a mom and pop shop to a freelancer living job to job, will pay more than 15% of their business income in taxes. This lower rate makes corporate inversions unnecessary by making America’s tax rate one of the best in the world.
4. No family will have to pay the death tax. You earned and saved that money for your family, not the government. You paid taxes on it when you earned it.

The Trump Tax Plan Is Revenue Neutral

The Trump tax cuts are fully paid for by:

1. Reducing or eliminating most deductions and loopholes available to the very rich.
2. A one-time deemed repatriation of corporate cash held overseas at a significantly discounted 10% tax rate, followed by an end to the deferral of taxes on corporate income earned abroad.
3. Reducing or eliminating corporate loopholes that cater to special interests, as well as deductions made unnecessary or redundant by the new lower tax rate on corporations and business income. We will also phase in a reasonable cap on the deductibility of business interest expenses.

DETAILS OF DONALD J. TRUMP’S TAX PLAN

America needs a bold, simple and achievable plan based on conservative economic principles. This plan does that with needed tax relief for all Americans, especially the working poor and middle class, pro-growth tax reform for all sizes of businesses, and fiscally responsible steps to ensure this plan does not add to our enormous debt and deficit.

This plan simplifies the tax code by taking nearly 50% of current filers off the income tax rolls entirely and reducing the number of tax brackets from seven to four for everyone else. This plan also reduces or eliminates loopholes used by the very rich and special interests made unnecessary or redundant by the new lower tax rates on individuals and companies.

The Trump Tax Plan: A Simpler Tax Code For All Americans

When the income tax was first introduced, just one percent of Americans had to pay it. It was never intended as a tax most Americans would pay. The Trump plan eliminates the income tax for over 73 million households. 42 million households that currently file complex forms to determine they don’t owe any income taxes will now file a one page form saving them time, stress, uncertainty and an average of $110 in preparation costs. Over 31 million households get the same simplification and keep on average nearly $1,000 of their hard-earned money.

For those Americans who will still pay the income tax, the tax rates will go from the current seven brackets to four simpler, fairer brackets that eliminate the marriage penalty and the AMT while providing the lowest tax rate since before World War II:

Income Tax Rate	Long Term Cap Gains/ Dividends Rate	Single Filers	Married Filers	Heads of Household
0%	0%	$0 to $25,000	$0 to $50,000	$0 to $37,500
10%	0%	$25,001 to $50,000	$50,001 to $100,000	$37,501 to $75,000
	20%	15%	$50,001 to $150,000	$100,001 to $300,000	$75,001 to $225,000
25%	20%	$150,001 and up	$300,001 and up	$225,001 and up

With this huge reduction in rates, many of the current exemptions and deductions will become unnecessary or redundant. Those within the 10% bracket will keep all or most of their current deductions. Those within the 20% bracket will keep more than half of their current deductions. Those within the 25% bracket will keep fewer deductions. Charitable giving and mortgage interest deductions will remain unchanged for all taxpayers.

Simplifying the tax code and cutting every American’s taxes will boost consumer spending, encourage savings and investment, and maximize economic growth.

Business Tax Reform To Encourage Jobs And Spur Economic Growth

Too many companies – from great American brands to innovative startups – are leaving America, either directly or through corporate inversions. The Democrats want to outlaw inversions, but that will never work. Companies leaving is not the disease, it is the symptom. Politicians in Washington have let America fall from the best corporate tax rate in the industrialized world in the 1980’s (thanks to Ronald Reagan) to the worst rate in the industrialized world. That is unacceptable. Under the Trump plan, America will compete with the world and win by cutting the corporate tax rate to 15%, taking our rate from one of the worst to one of the best.

This lower tax rate cannot be for big business alone; it needs to help the small businesses that are the true engine of our economy. Right now, freelancers, sole proprietors, unincorporated small businesses and pass-through entities are taxed at the high personal income tax rates. This treatment stifles small businesses. It also stifles tax reform because efforts to reduce loopholes and deductions available to the very rich and special interests end up hitting small businesses and job creators as well. The Trump plan addresses this challenge head on with a new business income tax rate within the personal income tax code that matches the 15% corporate tax rate to help these businesses, entrepreneurs and freelancers grow and prosper.

These lower rates will provide a tremendous stimulus for the economy – significant GDP growth, a huge number of new jobs and an increase in after-tax wages for workers.

The Trump Tax Plan Ends The Unfair Death Tax

The death tax punishes families for achieving the American dream. Therefore, the Trump plan eliminates the death tax.

The Trump Tax Plan Is Fiscally Responsible

The Trump tax cuts are fully paid for by:

1. Reducing or eliminating deductions and loopholes available to the very rich, starting by steepening the curve of the Personal Exemption Phaseout and the Pease Limitation on itemized deductions. The Trump plan also phases out the tax exemption on life insurance interest for high-income earners, ends the current tax treatment of carried interest for speculative partnerships that do not grow businesses or create jobs and are not risking their own capital, and reduces or eliminates other loopholes for the very rich and special interests. These reductions and eliminations will not harm the economy or hurt the middle class. Because the Trump plan introduces a new business income rate within the personal income tax code, they will not harm small businesses either.
2. A one-time deemed repatriation of corporate cash held overseas at a significantly discounted 10% tax rate. Since we are making America’s corporate tax rate globally competitive, it is only fair that corporations help make that move fiscally responsible. U.S.-owned corporations have as much as $2.5 trillion in cash sitting overseas. Some companies have been leaving cash overseas as a tax maneuver. Under this plan, they can bring their cash home and put it to work in America while benefitting from the newly-lowered corporate tax rate that is globally competitive and no longer requires parking cash overseas. Other companies have cash overseas for specific business units or activities. They can leave that cash overseas, but they will still have to pay the one-time repatriation fee.
3. An end to the deferral of taxes on corporate income earned abroad. Corporations will no longer be allowed to defer taxes on income earned abroad, but the foreign tax credit will remain in place because no company should face double taxation.
4. Reducing or eliminating some corporate loopholes that cater to special interests, as well as deductions made unnecessary or redundant by the new lower tax rate on corporations and business income. We will also phase in a reasonable cap on the deductibility of business interest expenses.

[DannyTN]

Trump's tax plan as posted on his website.

If he puts in place tariffs and/or fair trade that returns Americans jobs, he will have a big boost in revenues from the tariffs and/or income taxes on the new jobs.

[cableguymn]

The one thing I take away..

TAX THE RICH MORE!

ya.. that’ll fix the problem.

[cableguymn]

tariffs are simply passed on to the people buying the product. aka Us.

He is raising taxes on all american people. many are just to dumb to realize it.

[Grampa Dave]

Good plan!

Cue the Trump haters to tell us about how concerned they are about Trump, and how stupid we are to believe in him.

[dynoman]

Trump has my vote on this alone.

[Helicondelta]

“The highest individual income-tax rate would be 25%, compared with the current 39.6% rate.”

[Vendome]

And the deficit?

The size of government?

[bray]

Looks great!

Pray America wakes

[DannyTN]

Not if there are American competitors. If there are American competitors pricing below the tariffed import price, the importer has to eat the tariff and reduce their profits.

Again, the cheap import price doesn't include the following costs:

• The taxes that a domestic producer gets charged that support our system.
• The cost of supporting unemployed Americans.
• The opportunity cost of having those Americans working, paying taxes and spending their earnings into the American economy.

A tariff at a minimum should offset those costs otherwise we are shooting ourselves in the foot everytime we import.

[Catsrus]

All taxpayers still have to pay state and local taxes regardless. Putting more money in taxpayer’s pockets stimulates the economy. So, even if they aren’t paying federal taxes - they still pay sales taxes, state (where applicable) and local taxes.

[Opinionated Blowhard]

1.If you are single and earn less than $25,000, or married and jointly earn less than $50,000, you will not owe any income tax.

Huge, critical mistake. This is why our country is swirling down the toilet. Too many people don't feel the pain of paying taxes. EVERYONE needs to pay at least 10% of their income in tax, period. It will make the moochers think twice before they vote themselves more government goodies, thinking that only "the rich" will pay for it.

[Cowboy Bob]

Trump also needs to get rid of Affirmative Action in the workplace. This is what has been crippling American business in the global marketplace.

[Resettozero]

Well, it’s a plan, Gramps. And DT has put this and other plans out there for folks to consider. Better than pulling a Boehner and DOING NOTHING!

This Trump plan cannot be any worse than the mess we have now.

[dp0622]

Kinda wondering about that myself.

And even if it’s 5 percent, no one should pay no taxes.

[Catsrus]

I have to laugh at people who believe this is a finished product. It will be tweaked and debated and then a final plan would be forthcoming. This is a blueprint. People in this country are so ill informed.

[redfreedom]

Bet Trump would do that long before Fiorina.

[onyx]

I love it!

This poor widow will pay no federal income taxes!!!

[econjack]

The Laffer Curve suggests, with the tax rates suggested, that tax revenue will actually increase. If you can hold the friggin' politicians at bey, the deficit should decrease.

The size of gov't depends on other things. Personally, I'd love to see the next President come out and say:

By Executive Order, all federal budgets are frozen at their current levels, with the exception of the Military who will get an immediate 5% raise. In addition, the EPA is now closed. All other agencies, excluding the military, will be required to trim the number of employees by 10% over the next year while maintaining the current level of service. Those managers who cannot do this will be replaced by someone who can. Have a nice day.

[Grampa Dave]

My wife and I are in our 70’s on the high end, and we pay taxes quarterly and monthly.

I keep a large folder for our weekly/monthly/yearly deductions, and the end of the year organize it into a spreadsheet for our CPA.

We spend close to an hour with him and get a bill of about $400 to keep the IRS dogs off our back.

We have very productive younger relatives, who have to deal with even more tax bs. Depending on their income flows, some deal/meet with their CPAs monthly/quarterly and pay dearly to abide with all of the IRS requirements.

Our younger relatives, those in our age bracket, will welcome this new tax plan!

[EagleUSA]

“..This Trump plan cannot be any worse than the mess we have now...”

It is a great start at least in the right direction. Too many freeloaders who do not pay tax on INCOME (wages, salary, interest and dividend earnings). A good base plan that is a start. At least he got something out there based on improving our capitalistic economy as opposed to destroying it.