LESS INCOME TAX, SIMPLIFY EVERYTHING
Trump states: “Too few Americans are working, too many jobs have been shipped overseas, and too many middle class families cannot make ends meet”
The candidate lays out his goals and plans to achieve these goals:
Tax relief for middle class Americans: In order to achieve the American dream, let people keep more money in their pockets and increase after-tax wages.
Single individuals earning up to $25,000, or married couples earning less than $50,000, you will not owe any income tax.
This removes nearly 75 million households – over 50% – from the income tax rolls. They then receive a simple one page tax form to send to the IRS.
Those who would otherwise owe income taxes will save an average of nearly $1,000 each.
Simplify the tax code to reduce the headaches Americans face in preparing their taxes and let everyone keep more of their money.
Americans earning an annual amount higher than these marks will get a simpler tax code with four brackets – 0%, 10%, 20% and 25% – instead of the current seven.
This new tax code eliminates the marriage penalty and the Alternative Minimum Tax (AMT) while providing the lowest tax rate since before World War II.
Grow the American economy by discouraging corporate inversions, adding a huge number of new jobs, and making America globally competitive again.
No business of any size will pay more than 15% of their business income in taxes.
This lower rate makes corporate inversions unnecessary by making America’s tax rate one of the best in the world.
Doesn’t add to our debt and deficit, which are already too large.
No family will have to pay the death tax. “You earned and saved that money for your family, not the government. You paid taxes on it when you earned it.”
Supplementing the Tax Revenue
Mr. Trump has accounted for the need to supplement this lost government revenue previously paid for by taxes by:
Reducing or eliminating most deductions and loopholes available to the very rich.
A one-time deemed repatriation of corporate cash held overseas at a significantly discounted 10% tax rate, followed by an end to the deferral of taxes on corporate income earned abroad.
Reducing or eliminating corporate loopholes that cater to special interests, as well as deductions made unnecessary or redundant by the new lower tax rate on corporations and business income. We will also phase in a reasonable cap on the deductibility of business interest expenses.
“The Trump plan eliminates the income tax for over 73 million households”
“Create simpler, more fair income tax brackets for those Americans who will still pay the income tax”
Trump states that when these two goals are achieved they will: “Boost consumer spending, encourage savings and investment, and maximize economic growth.”
Mr. Trump can be quoted as to saying, “Too many companies – from great American brands to innovative startups – are leaving America” Trumps position on how to fix this issue is: “America will compete with the world and win by cutting the corporate tax rate to 15%, taking our rate from one of the worst to one of the best.”
“Corporations will no longer be allowed to defer taxes on income earned abroad, but the foreign tax credit will remain in place because no company should face double taxation.” Corporations will also not be able to have excessive tax deductions, and overall tax revenue on corporations will rise.
Source: “Tax Reform.” Accessed December 10, 2015. https://www.donaldjtrump.com/positions/tax-reform.