Donald Trump simplifies the Tax codes, cuts taxes for millions and still increases current Revenue.
Why hasn’t anyone done this before? That’s right it doesn’t benefit the wealthy.
Under a President Donald Trump, some Americans will pay no income tax and the corporate income tax will fall to 15 percent, while the Treasury Department will maintain or even increase current revenue.
The tax plan “is going to cost me a fortune,” the billionaire candidate told a gathering of reporters at Trump Tower on Monday morning.
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“We have an amazing code. It will be simple, it will be easy, it will be fair,” he explained.
And it has the endorsement of Grover Norquist.
“Trump’s plan is certainly consistent with the Taxpayer Protection Pledge,” said Norquist, the president of Americans for Tax Reform, in an emailed statement. “Trump has said he opposes net tax hikes and has made clear that the real problem is spending. This plan is a reform, not a tax hike.”
Norquist’s pledge requires candidates to oppose all efforts to raise marginal tax rates for individuals or businesses. In an interview with Time magazine last month, however, Trump said that he was skeptical of signing Norquist’s pledge because “I may want to switch taxes around.” He added that the overall effect would not result in a net increase.
“I think this is a common-sense, well-thought-out tax proposal” that will put Americans back to work, Trump said during his announcement on Monday. “There’s not a country that we negotiate with that doesn’t make a better deal.”
The corporate tax rate of 15 percent will incentivize companies to stay in the U.S. to stem the tide of departures overseas, he said.
“These lower rates will provide a tremendous stimulus for the economy – significant GDP growth, a huge number of new jobs and an increase in after-tax wages for workers,” Trump said in his proposal.
The plan would also eliminate the marriage penalty tax and so-called “unfair” death tax.
Trump gave “60 Minutes” viewers a sneak peek of his proposal during an interview that aired Sunday night, and explained how some of the wealthiest Americans would have to deal with a tax hike.
“If you look at actually raise, some very wealthy are going to be raised. Some people that are getting unfair deductions are going to be raised,” Trump told Scott Pelley. “But overall it’s going to be a tremendous incentive to grow the economy and we’re going to take in the same or more money. And I think we’re going to have something that’s going to be spectacular.”
Under Trump’s plan, the Republican candidate explained, “there will be a large segment of our country that will have a zero rate, a zero rate.”
“And that’s something I haven’t told anybody,” he remarked of his proposal to make part of the population exempt from income taxes, as “many of them don’t [pay] anyway.”
Under the proposal, individuals making less than $25,000 and married couples making less than $50,000 will not have to pay taxes. The current highest income-tax rate—39.6 percent—would drop to 25 percent. Overall, the number of rates would decrease from the current seven to four, at 0, 10, 20 and 25 percent. While 36 percent of American households do not pay income tax currently, that share would jump to 50 percent.
“My plan will bring sanity, common sense and simplification to our country’s catastrophic tax code,” Trump told the Journal. “It will create jobs and incentives of all kinds while simultaneously growing the economy.”
Pelley grilled Trump on how cutting the corporate tax rate would work, given that the federal deficit is $19 trillion.
“That’s right. We’re gonna grow the economy so much,” Trump said.
Pelley then remarked that Trump could not “afford to do those things.”
If the economy “grows the way it should grow,” Trump responded, and jobs return from China, Japan and Mexico, then it will be successful.
Asked to respond to the latest barb from Florida Sen. Marco Rubio that his campaign is a “freak show,” Trump remarked that his Republican rival is a “lightweight” who “wouldn’t know a trade deal from any other deal.”
Read more: www.politico.com