Posted on 09/28/2015 9:27:50 AM PDT by SeekAndFind
WASHINGTON — Republican presidential front-runner Donald Trump is calling for an overhaul of the tax code that would eliminate income taxes for millions of Americans, while lowering them for the highest-income earners and business.
The plan unveiled Monday would eliminate federal income taxes on individuals earning less than $25,000 and married couples earning less than $50,000.
But the plan would also benefit businesses and the rich. It would lower the corporate tax rate from 35 percent to 15 percent and lower the highest income tax rate from 39.6 percent to 25 percent.
But Trump said the plan would also impact the wealthy by reducing or eliminating most deductions and loopholes.
"In other words, it's going to cost me a fortune," he said at a news conference at his Trump Tower skyscraper in Manhattan.
Trump wants to eliminate the so-called "carried interest loophole" that allows managers of hedge funds and private equity firms to pay a lower tax rate than most individuals.
The billionaire real estate mogul says the country would pay for the tax cuts through a combination of eliminating deductions and loopholes. He also wants to allow corporations to bring money held in overseas accounts back to the United States after paying a one-time tax of 10 percent.
In sum, he says, the changes he wants to enact would not add to the annual federal budget deficit or the national debt.
"We have an amazing code," Trump said of his tax system. "It will be simple. It will be easy. It will be fair."
Trump estimated that his plan would lead the economy to grow at least 3 percent a year, and as much as 5 or 6 percent.
The tax plan is the third major policy proposal from Trump, who has also outlined plans for immigration and guns.
(Excerpt) Read more at news.yahoo.com ...
Will it please hardcore “I’m the only True Conservative around” type conservatives?
Nope.
Will it undercut some of the Dem class rhetoric and appeal to populists and working class Dems?
Sure. Why not.
The gibmedats don't pay taxes already. Their prime concern will be legalizing pot and increasing govt handouts.
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:
If you’re a retired couple making 95k per year with about half of it capital gains.... You’ll probably like this plan
I personally think we COULD see a return of the noonday factory whistle in manufacturing in America
I also think Trump is the only one daring enough to try it
Corporate income tax slashed to 15% is the takeaway I see.
Good for Trump. He’s right about that.
How about repeal the 16th amendment and scarp the whole thing. Go with tariffs and a NRST instead.
I think they should make the home mortgage dedeuction a tax CREDIT, to spur home ownership, stable families, real estate, etc.
Because, as Confucius said, "A journey of a thousand li begins with a single leap all the way to the end." (paraphrasing, of course)
That would be great. This is still a progressive tax package. I thought republicans were against that.
No one should be paying zero taxes and no one should have more or less allowable deductions than others because of their success.
But what do I know?
RE: “A journey of a thousand li begins with a single leap all the way to the end.”
I think Lao Tsu first said that. Mao Tze Tung quoted it before he made his Long March and it has since been attributed to him.
Yes, and why don’t we have senators elected by state legislatures again. And why don’t we get Ozzie and Harriet and little house on the prairie back on the air.. And why don’t we get rid of the ‘unconstitutional’ income tax altogether... Why don’t you try being happy about what we might actually accomplish? At least Trump is moving the ball in the right direction. Did you hear what he said about running the government like a business? Lot’s of savings and potential tax cuts right there!
Hey, I like Trump.
How about eliminate the double taxation of stockholders...?
How about making giant tax-deductible foundations give away say 90% of their money each year?
“Congress is not empowered to tax for those purposes which are within the exclusive province of the States.” —Justice John Marshall, Gibbons v. Ogden, 1824.
Also tell Trump that the reason that probably most federal taxes are uncostitutional is because the corrupt, post 17th Amendment ratification Senate is not doing its job to protect the states as the Foundining States had intended for it to do. The Senate actually hurts the states by helping the corrupt House to pass unconstitutional tax appropriations bills, bills that arguably steal state revenues.
The ill-conceived 17th Amendment needs to disappear, and corrupt senators who pass unconstitutional House appropriations bills along with it.
It would at least generate a windfall that could help bolster the economy in the first year of such a tax rule.
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