Posted on 09/28/2015 8:18:50 AM PDT by Helicondelta
Republican presidential candidate Donald Trump plans to unveil an ambitious tax plan Monday that he says would eliminate income taxes for millions of households, lower the tax rate on all businesses to 15% and change tax treatment of companies’ overseas earnings.
Under the Trump plan, no federal income tax would be levied against individuals earning less than $25,000 and married couples earning less than $50,000. The Trump campaign estimates that would reduce taxes to zero for 31 million households that currently pay at least some income tax. The highest individual income-tax rate would be 25%, compared with the current 39.6% rate.
Many middle-income households would have a lower tax rate under Mr. Trump’s proposal, but because high-income households generally pay income tax at much higher rates, his proposed across-the-board rate cut could have a positive impact on them, too. For example, an analysis of Jeb Bush’s plan—taxing individuals’ incomes at no more than 28%—by the business-backed Tax Foundation found that the biggest percentage winners in after-tax income would be the top 1% of earners.
(Excerpt) Read more at wsj.com ...
Exactly, why would hedge fund guys hate this plan?
Less people with skin in the game. I thought conservatives wanted everyone to pay at least a little so they felt more ownership when the government wastes their money.
Currently, unlike other businesses doctors have very little options to reduce taxes. The main option is a deferral of taxes through contributions to retirement plans. As a tax shelter it is just a "pay later" rather than now option. In our current environment it is possible that DR's and other professionals will pay more on income deferred if congress keeps raising rates.
Middle America has been economically gang banged for decades, and used and a GD punching bag as their standard of living declined while the rich got richer.
The IRS are hired guns and are only there to force their political will and loot Americas. IRS need to be the first to be eliminated.
God bless my Sen Cruz....he might do best with saying flat tax, over saying abolish the IRS....
Who here wouldn’t love to see the IRS eliminated, or, at the very least emasculated? But, folks like my older aunts/uncles think that’s crazy talk. They’re in the Snarly Carly camp, for now, so there’s that :)
I think Trump’s goal is to move the realistic mountain, so to speak...not just throw the red meat. Speaking of red meat, is Cruz also going to also abolish SS? Just saying.
From your link....
The fiery rhetoric garners hearty applause from conservative audiences, particularly since revelations in 2013 that the IRS targeted Tea Party groups for extra scrutiny. But some federal agency is going to have to collect taxes, so Cruz’s vow to shutter the IRS smacks of a politically motivated campaign promise rather than serious policy — at least to some.
“We will roll it out with precise details in the coming weeks or months,” he said. “There are trade-offs to be had and we’re right now internally having those debates, in terms of whether you have a couple of deductions or exemptions or not, at what rate the flat rate is set, what level of standard deductions and so those trade-offs we’re currently debating.”
This was from April, of this year. Has Cruz “rolled out the precise details” of his plan, yet? TMIA.
Exactly!
I have no interest in any tax plan that allows more people to pay nothing while the rich pay more.
That is right out of the Democratic play book.
And dont try to trick me into believing this is a tax cut for everyone. If millions more are paying NOTHING, that means that still paying have to be paying more if you want to take in the same amount of revenue.
This is just a tricky way of saying what Democrats always say about taxes.
TAX THE RICH MORE!
Trump wants to take all those ways and impose what is essentially a flat tax for all.
We would have to eliminate the Federal Government first. IRS collects and enforces all federal taxes. Even with a flat tax we need someone to clear our checks.
Sounds like it is still a progressive TAX and the IRS is still in control.
No thanks
We end up subsidizing up through the middle income level as it is currently. Far better to let them keep more or all of their income and reduce subsidies than to discourage work by taxing it, even though we subsidize them elsewhere.
The way I’m seeing Trump’s plan at first glance is that the reduction in corporate taxes and business-only taxing of small businesses and contractors will give a significant boost to the economy.
Eliminating taxes up to the middle class will help to get the buy in needed to get the corporate reductions passed and into law.
He does talk about reducing spending as key to his plan as well.
I like freedom.
Why should the government control what I buy?
Your idea is what causes government to keep growing while freedom keeps on dying.
Limited government desperately needs to return; it cannot do so with any kind of consumption tax.
.
When the other side of the ledger is going to get chopped big time. The extra waste by government that Trump plans to cut, it turns this hackneyed argument into agitprop.
And these same AH's attack Trump on an hourly basis? ☺ He catching their flack because he's over their filthy corrupt camps.
They’ve already got skin in the game in payroll, sales, state, and other taxes.
Just looking at their tax situation with the federal government, however. Better to trade subsidies for lower or eliminated tax rates, as high subsidies and high taxes give double incentives for people not to work.
It looks like Trump’s plan is meant to encourage people both to work and to be hired in an invigorated economy.
Essentially this plan would increase there tax rate from 20% to 25% (the new maximum tax rate on ordinary income).
So which tax is required for voting rights? Sales taxes from fueling up a car? Taxes on a cell phone bill? The taxes that every consumer pays when they buy a product - not the sales taxes at the counter, but the taxes the company who made the product pays? As that’s included in the price of the item.
It is extremely difficult to get through a single day without paying taxes in some form or another. I’m curious as to who exactly you’d exclude?
The current maximum tax rate on ordinary income is 39.6%. Trump's plan cuts that to 25%.
That's a pretty significant cut for the rich.
Every American citizen can vote for his/her representatives in govn. from the president down to their county representatives. They are voting for people, not about how govn. spends money. Many years ago, people had to pay a poll tax to vote and that was rescinded as unconstitutional.
Plus, if voting rights were related to the amount of money people make, these people who make smaller money amounts who wouldn't pay taxes, would be captive people - their voting rights would be taken from them due to no fault of their own. That would be unconstitutional.
If i were a hedge fund guy I would love this plan. Their income comes from after tax business profits. If the businesses they control have lower tax and our more competitive in world markets then the hedge fund guys will have higher income and stock prices go up. Its an overall win.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.