“In order to achieve the American Dream, let people keep more money in their pockets and increase after-tax wages”, Trump’s proposal reads.
Standing in the lobby of Trump Tower in Midtown, the real estate developer insisted that wealthy taxpayers like himself would be among the hardest hit under his plan by eliminating deductions. There will be a major tax reduction.
Former Ronald Reagan speechwriter Jeff Bell found a lot to like in Donald Trump’s tax plan.
The emerging conventional wisdom on Donald Trump’s tax plan is that it is a trillion dollar giveaway to the best-off Americans coupled with a populist flourish in the form of a small tax hike for the carried interest income earned by hedge fund millionaires.
The bottom 30 percent would gain between 0.6 percent and 11.5 percent in after-tax income. “We need a tax system that rewards work instead of just wealth”. And, according to tax experts, they’d all blow a hole in the federal budget of $2.4 trillion or more over the next 10 years. “But even accounting for that, their figures seem wildly off the mark, especially compared to how they scored similar provisions for Jeb Bush’s plan”, Trump spokeswoman Hope Hicks said.
Either way you cut, the Trump tax plan is a “disaster” which only benefits the wealthy and does nothing for the country. An income statement he released alongside his personal financial disclosure report this past summer reported his 2014 income as $362 million.
And by cutting 10 percentage points from the current corporate tax rate of 35 percent, the Trump Organization and its hundreds of subsidiaries would pay less – assuming they don’t already use tax strategies to reduce their effective rate below 15 percent.
“This could be one of the great tactical ploys of all time”, he later added.
“Republican candidates aren’t looking to be revenue-neutral” anymore, he said. “I don’t think that’s going to be Donald Trump”. The Tax Policy Center estimates that 953,000 households making between $50,000 and $200,000 had to pay the AMT this past tax season.
“From what I’ve seen so far, the cuts in tax rates are large enough that getting rid of tax preferences would not recoup the lost revenues”, Williams says. “Eliminating the tax code and a mountain of regulations will cause our economy to explode with growth”. This is more proof that the Trump is all talk. “It just doesn’t square up”, he said.