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Breaking: Trump Just Officially Announced His Tax Plan And It Includes Some BIG Changes
Donald Trump released his bold tax plan, which would eliminate federal income tax liability for millions of middle income Americans and make the nation’s corporate income tax rate among the lowest in the world.
The billionaire candidate unveiled his plan at Trump Tower on Monday morning. “We have an amazing code. It will be simple, it will be easy, it will be fair,” he explained.
The plan calls for four tax brackets for both personal income tax (there are currently seven) and investment income:
Image Credit: DonaldJTrump.com
“While 36 percent of American households do not pay income tax currently, that share would jump to 50 percent” under Trump’s plan, Politico reports.
The tax plan “is going to cost me a fortune,” Trump told reporters. The billionaire candidate’s proposal calls for ending deductions and exemptions in order to simplify the tax code and not reduce revenue to the Treasury. In fact, Trump believes that the overall effect of his plan would be a net increase in revenue.
Under the new tax regime, some wealthy Americans will see in an increase in their tax liability. “If you look at actually raise, some very wealthy are going to be raised. Some people that are getting unfair deductions are going to be raised,” Trump told 60 Minutes’ Scott Pelley on Sunday night, while giving a sneak peek at the plan. “But overall it’s going to be a tremendous incentive to grow the economy and we’re going to take in the same or more money. And I think we’re going to have something that’s going to be spectacular.”
“I think this is a common-sense, well-thought-out tax proposal,” he said on Monday. “There’s not a country that we negotiate with that doesn’t make a better deal.”
The candidate also stated that reducing the corporate tax rate to 15 percent (from 35 percent) “will incentivize companies to stay in the U.S. to stem the tide of departures overseas.”
“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,” Trump said in his proposal.
Trump said his plan would result in the lowest tax rate since below World War II. The last time the country significantly overhauled the federal tax code was under President Ronald Reagan in the 1980. The top marginal rate was brought down from 70 percent to 28 percent. The resulting economic boom caused the economy to grow one-third larger (the size of the entire economy of Germany) and doubled revenues to the Treasury.
Americans for Tax Reform’s Grover Norquist appeared to give the plan his stamp of approval, making clear the problem in Washington is not that tax rates are too low, but that the government spends too much.
Donald Trump’s tax reform plan–released Monday am — is perfectly consistent with the Taxpayer protection Pledge. (the problem is spending)
— Grover Norquist (@GroverNorquist) September 28, 2015
h/t: Mashable.com
Source: http://www.westernjournalism.com/breaking-trump-just-officially-announced-his-tax-plan-and-it-includes-some-big-changes/
