Trump wants to lower taxes, except for very rich

In laying out his plan on Monday, Trump also attacked what he says is a growing trend of corporate “inversions”, in which US corporations move the legal address of their headquarters overseas to reduce their tax liability.

“I fight like hell to pay as little as possible”, Trump said Monday at Trump Tower as he announced his tax plan.

Trump says that all these tax cuts are paid for in large part by eliminating deductions and loopholes on the rich and on corporations, as well as by levying other taxes on businesses. This makes us competitive worldwide.

But Trump’s new 25 percent top rate is not far off from the 20 percent capital gains rate for top earners now.

“We have an awesome (tax) code”. His argument focused on a rhetorical favorite of Trump’s the automotive industry in Mexico. He has been criticized for failing to unveil specific policy proposals as he’s risen in early preference polling.

An NBC/Wall Street Journal survey released on Sunday showed the 69-year-old celebrity real estate mogul with a lead of just 1 percentage point over retired neurosurgeon Ben Carson.

That’s a heavy lift for one tax reform plan. That would be a hefty tax cut for the rich. Might he even be prepared to raise his own taxes? “It will create jobs and incentives of all kinds while simultaneously growing the economy”. The candidate’s other flaws notwithstanding, Trump’s ideas on taxes seemed like a breath of fresh air for a party with a borderline religious fealty to trickle-down theory. But when it comes to the scale of the tax cuts, Trump’s plan is on a much different scale of Bush’s. Republicans and conservatives should not give aid and comfort to this long term strategy. After than, the money is subject to United States of America tax rates.

The current highest tax bracket is 39.6 percent for individuals making more than $413,000.

Rates would go down from there to 20 percent – for joint filers earning $100,000 or $50,000 for single filers – to 10 percent, and then eliminate income taxes on couples earning $50,000 or less, or $25,000 or less for single filers. He vowed to eliminate the so-called death tax, formally known as the estate tax, and get rid of the “carried interest” loophole that lets private equity and hedge fund managers pay a lower tax rate than other people.

Some in the middle class will benefit from the elimination of the Alternative Minimum Tax.

The plan is meant to be revenue-neutral under a dynamic analysis.

However, the charitable giving and mortgage interest deductions would stay the way they are now. The Trump campaign estimates that would reduce taxes to zero for 31 million households that now pay at least some income tax. The highest bracket would be 28% while the lowest would be 10%. It cuts tax rates on capital gains and investment income. “This is actually a tax reduction, a big tax reduction, including for the upper income”. It would limit the value of individual deductions, with middle-class households keeping all or most of their deductions, higher-income taxpayers keeping around half of theirs, and the very wealthy losing a significant chunk of theirs.

Business interest: This deduction will face a phased in cap. If competitors don’t comply, Trump will tax their imports, he said. 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.

The lower corporate rates would provide “a tremendous stimulus for the economy”, the campaign’s plan argues.