Posted on 09/29/2015 6:24:50 AM PDT by SeekAndFind
Fiscal Policy: It isn't as ambitious as a flat tax or a national sales tax, but there's a surprising amount of sensible tax policy changes recommended in Donald Trump's tax reform plan released on Monday.
He's proposing the biggest reduction in tax rates since the 1986 Tax Reform Act under Ronald Reagan, and like the Gipper's reforms, this plan would cover the costs by closing loopholes. So, bravo.
Trump would cut tax rates across the board. The highest income tax rate would shrink from about 40% under current law to 25%. The top capital gains tax rate would be reduced to 20% from 23.8%.
The estate tax, now at 40%, would fall to zero. This plan also eliminates the hated alternative minimum tax and the marriage penalty tax imposed on working married couples.
Not many in the media paid attention to his call for a 15% corporate tax down from the U.S. current world's highest rate of 35% but this might be the most pro-growth reform of all.
Trump's rhetoric on growth was refreshing, too, coming from a candidate who over the last few months has sounded more populist and even progressive than conservative, at least when it comes to taxes and jobs.
When asked where the revenue would come from to pay for his tax reductions, he answered that the plan would bring more jobs and business to America and he has history on his side.
He also said, "We have to start cutting costs" of government, and hallelujah for that: A presidential candidate who says that we can let people keep more of their own earnings and finance tax cuts by eliminating the insane waste and incompetence in government spending.
(Excerpt) Read more at news.investors.com ...
Government assistance which is why removing 75 million from the tax rolls is such a huge incentive for more government.
It appears to do nothing about payroll taxes, which for many lower wage workers is there greatest tax liability.
Also, I haven't seen the specifics of how this is paid form so that's smoke and mirrors right now.
The article says capital gains is still taxed at a separate rate. I didn't see that, but I may have just overlooked it.
I'm not crazy at all about exempting half of households from federal income taxes. but that is easily remedied bty adding a bottom rate of 1% - 5%.
It still doesn't persuade me to vote for Trump, but kudos for a specific, good plan.
RE: It appears to do nothing about payroll taxes,
It won’t and it can’t.
Payroll taxes go to Medicare and Social Security, which are untouchable as of this time.
They haven’t spoken about those issues in the first two debates at all.
I understand. I’m just clarifying. Social Security and Medicare will have to be addressed someday, but this is still a good start.
I agree that lower tax rate could be 5%.
However I heard Trump say he wants to get the economy fired up.
I feel that 5% tax on these people would be a hardship.
1. Since Obama became POTUS take home income shrunk $5,000
per household.
2. Cost of living is up. Taxes up.
3. Savings rate is very low, people don’t have a cash cushion
4. Consumers are carrying a lot of debt.
5. Homes are in many states still under water, and many lost their homes to foreclosures.
6. Medical insurance has skyrocked
7. Because of Obamacare, companies have cut working hours back to part time levels, to skirt the rules that the business pay for medical insurance for 30 hour or more employees.
Maybe once we get people working, in better financial shape we can Squeeze that 5% out of them, which I agree would be ideal.
For now I think Trump is right, closing loopholes, and cutting rates.
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