Those making up to $30,000 will pay 1 percent.
Income from $30,000 to $100,000 is assessed a flat 5 percent tax.
$100,000 to $1 million income will be taxed at 10 percent.
$1 million or above will be taxed 15 percent.
No exceptions, no loopholes. Not much for the IRS to really do.
I'd prefer the Fair Tax, but Trump's plan does not seem overly Democratic to me.
So it takes 10 years of losing money by investing in infrastructure so I can finally make a “profit?” I pay taxes on the profit but don’t get to write down the cost of making it?
This structure only works for employees. Even then a “progressive” (see that word?) tax is inherently unfair.
I’d love to see this done for a couple years, you would not believe the amount of money taken in. Plus more money in our hands to spend on stuff we don’t need, which will make everyone happier...
Why tax me arbitrarily on the front end instead of the back end?
I have control of the money I earn through my labor when I'm taxed on the backside. See reply 7. I'll buy the stainless flatware for now and buy the silver when I can afford it.
Make that reply 4.
This might work for an employee that receives a W-2, but not for a 1099 contractor or business owner.
That is why the national sales tax is the only solution that actually simplifies the system.
Iheard about this too. What is described seems Ok. Top bracket 15? Much better than now.
That’s his plan this week. In the past he wanted to increase taxes on job creators and impose a 15% tax on all wealth. Next week, who knows what his tax stance will be.
Trump wants a top tax rate of 15%? What a Socialist!
Those making up to $30,000 will pay 1 percent.
Income from $30,000 to $100,000 is assessed a flat 5 percent tax.
$100,000 to $1 million income will be taxed at 10 percent.
$1 million or above will be taxed 15 percent.”
Unfortunately, that tax scheme, with those rates, wouldn't raise enough revenue to pay for national defense and Social Security. A better, simpler alternative would be a flat income or consumption tax rate (say, 15%) with a fixed zero-bracket amount (say, $7500 per household member). Although the tax rate is proportional, the incidence of such a tax would be “progressive” because of the zero-bracket provision.
“I’d prefer the Fair Tax, but Trump’s plan does not seem overly Democratic to me.”
It isn’t. And for those who are not fixated on the messenger, its a plan that will drastically reduce the taxes for the middle class. And it’s easy to figure out: take AGI from last years tax return, multiply it by the rates proposed and compare it to what you actually paid. In my own case, my taxes drop by about a third to half. I think I can live with that.
Yep, everybody pays Federal Income Taxes unlike today where only 50% pay them, that is very Democratic.
Of course, it is a Proposal that would have to go through the Legislative Sausage Making Machine, which again makes it just a Proposal, nothing more.