But as much as Trump is trying to build up his proposal where almost half of Americans would pay no federal income tax, his rivals are urging voters to compare it to the alternatives. Trump unveiled a controversial tax plan at the start of the week. “It is also the most faithful to supply-side principles”, Bell contends.
In the last US presidential campaign, Democrats blasted Mitt Romney’s tax plan as a giveaway to the rich ” so this year’s Republican candidates are being urged to focus on tax cuts to working-class Americans rather than the wealthy. They’re the ones that give away a lot of money and save a lot of taxes by giving away money and having large mortages.
But Mr. Trump would also cut the top tax rate to 25 percent from 39.6 percent, and bring down the corporate tax rate to 15 percent from 35 percent.
Alan Cole, an economist with the Tax Foundation opined that Donald Trump’s plan just reiterates what the present tax code does. This is not evidence that these people are misguided in their support for Hillary Clinton, or that they should support Donald Trump.
Combining first and second choices, Rubio has highest total of 31 percent.
Afterwards, all are told that the proposals they said they liked are Donald Trump’s, not Clinton’s. And while incomes for all Americans would rise under this scenario, there is an disproportionate benefit for the top 1%, of which Trump is a proud member.
According to the Tax Foundation’s Taxes and Growth Model, the plan would significantly reduce marginal tax rates and the cost of capital, which would lead to an 11 percent higher GDP over the long term provided that the tax cut could be appropriately financed.
Mr. Trump claims his plan wouldn’t starve the treasury of any revenue. All this could, in turn, boost growth within the U.S., he said.
“We’re gonna absolutely be able to pay for it. My economy will expand so rapidly”, Trump said.
Roberton Williams, a senior tax expert at the Tax Policy Center, said that Trump’s plan was hard to implement.
Romney, who hasn’t made an endorsement, listed John Kasich, Chris Christie, Marco Rubio, Lindsey Graham and Jeb Bush as mainstream conservatives, adding that Carly Fiorina could fit in that category if she “elucidates more on her policy positions”.