Donald Trump Unveils A Tax Plan

The plan would eliminate deductions and exemptions for the rich, but lowers their top tax rate to 25 percent, giving them a much greater savings in relative terms than lower earners.

Republican presidential candidate Donald Trump talks about his tax plan during a news conference, Monday, September 28, 2015, in New York. Pressed by critics and pundits to show more substance, Trump on Monday released a tax plan that proposed slashing income taxes for Americans across the board.

Trump’s plan will allow single workers who earn less than $25,000 annually, and married couples with joint incomes of up to $50,000, to bypass income taxes altogether.

DONALD TRUMP: No business of any size, from a Fortune 500 company to a mom-and-pop shop to a freelancer living from gig to gig, will pay more than 15 percent of their business income in taxes.

Trump said he could enact his plan without increasing the $19 trillion national debt partially because it will help the USA economy grow by 3 percent, and possibly by as much as 6 percent.

But Mr Trump will face a challenge in convincing skeptics that his aggressive tax cuts can be implemented without adding to the federal deficit. The current tax rate for repatriated profits is 35 percent.

“Trump has said he opposes net tax hikes and has made clear that the real problem is spending”. Rand Paul, R-Ky., previous year proposed a 6.5 percent tax rate on repatriated foreign earnings, with the proceeds going to pay for needed infrastructure improvements.

The highly anticipated tax plan comes as Trump is being pressed to provide more details about how his administration would govern. (Meaning the other 50%, of course.) Those no longer paying income taxes won’t care, because they won’t be affected, and they will be all too happy to vote for candidates who raise taxes. Even the author of “The Art of the Deal” will struggle to negotiate his way through such an implausible-sounding tax plan. Trump says he would reduce or eliminate most deductions and loopholes available to the very rich. He would limit their ability to itemize deductions and to claim the personal exemption.

But the Tax Foundation found that Trump’s plan is by far the most expensive.

When asked if his plan would affect his own rate, he responded that he’s cutting taxes and “there will be people in the very upper echelon that won’t be thrilled with this”.

As a result of the zero percent tax bracket, as many as 75 million Americans will be free of income tax liability. It also ends the current treatment of “carried interest”, which seems in keeping with his vow to go after the “hedge fund guys”, but also would appear to only bump up the tax rate on carried interest going to the wealthiest beneficiaries to 25 percent, the top rate on ordinary income.

“You can’t make that up in any way other than shifting the burden to the middle class” or running deficits, Gill said.

“I did the plan with a few of the leading scholars and economists and tax experts that there are in this country“.