So, what is inside Trump’s tax plan? Single individuals who earn less than $25,000 per year and married couples who together earn less than $50,000 per year will no longer be required to pay federal taxes at all under Trump’s plan. “They get a new one page form to send the IRS saying, “I win“, those who would otherwise owe income taxes will save an average of almost $1,000 each“.
But Trump said the plan would also impact the wealthy by reducing or eliminating most deductions and loopholes.
According to Trump’s plan, a few Americans won’t have to pay federal taxes.
“It’s a tax reform that I think will make America strong and great again”, said Mr. Trump.
“Some will say that my plan is unfair to the extremely wealthy”, he wrote then. That would be a hefty tax cut for the rich. Businesses would still be saddled with the complex, distorting, and growth-inhibiting “depreciation” regime where an asset is deducted over several or even many years. Not so surprisingly, the plan has a large and unspecified cost that Trump has vague plans to pay for through faster economic growth.
Well, no, they are wrong because we’re bringing in at least $2.5 trillion that’s stuck outside of this country.
This means that even the rich can cut cost from the tax plan, enabling them to save a hefty fortune by paying only 25 percent as compared to the current 39.6 percent. But in doing so it would end popular deductions. Currently, about a quarter of his income would be taxed at a 25% rate.
The treatment of foreign earnings is similar to what President Barack Obama proposed in February.
The middle class: Those in the middle class would likely pay less in taxes than they do now.
It also counts on that overseas business cash coming home, taking advantage of a one-time, significantly discounted 10% tax rate. Romney notoriously complained that 47 percent of Americans don’t pay taxes, and while those comments were recorded surreptitiously, the underlying idea – that too many Americans are “takers” rather than “makers” – was a core part of the Republican message in recent elections.
Critics want to know how the plan offsets potentially trillions in lost revenue. Trump is virtually tied with retired neurosurgeon Ben Carson, polling at 21 percent versus Carson’s 20 percent.
Think of it this way: many GOP plans aim to cut rates and broaden the base. Grover Norquist, the founder of Americans for Tax Reform, said that while he disagrees with eliminating the tax philosophically, it’s not the most important tax fight for him. “What it suggests is the campaign continues to be about rhetoric and not substance”.
THE FACTS: Only Trump and his accountant can be sure, since he does not specify in his proposal exactly which deductions and loopholes he plans to eliminate and has yet to release any of his tax returns.
“Bring in whatever you have for your income”, Walker said. He said he would eliminate the estate tax.
While Trump offered new policy details, he remained vague on the specifics of several other aspects of policy under a Trump administration throughout his at times combative back and forth with CBS anchor Scott Pelley.