POPULIST PROPOSALS UNVEILED …
|| By FITSNEWS || Confirming his prior statements, GOP presidential frontrunner Donald Trump rolled out a populist tax plan this week that he said would take “nearly 50 percent of current filers off the income tax rolls entirely” while “reducing the number of tax brackets from seven to four for everyone else.”
Trump’s plan – which his campaign stated was “revenue neutral” – would reportedly eliminate the income tax for 73 million American households (those making $50,000 or less). Another 42 million households currently filling out complex tax forms only to determine they owe no taxes “will now file a one page form saving them time, stress, uncertainty and an average of $110 in preparation costs.”
The new four-bracket tax code would eliminate the marriage penalty, the alternative minimum tax and provide individual filers with “the lowest tax rate since before World War II.”
Courtesy of his website, here’s a look at Trump’s flattening of the tax code …
“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 addition to the new tax brackets, Trump also wants to eliminate the death tax and impose a flat fifteen percent tax rate on all business income.
“This lower tax rate cannot be for big business alone; it needs to help the small businesses that are the true engine of our economy,” Trump said. “Right now, freelancers, sole proprietors, unincorporated small businesses and pass-through entities are taxed at the high personal income tax rates. This treatment stifles small business.”
That’s for sure …
So … who pays the freight for Trump’s tax cuts? According to him, his wealthy buddies.
Specifically, Trump’s plan calls for the reduction or elimination of “most deductions and loopholes available to the very rich.” It also calls for the reduction or elimination of “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.”
Obviously this website has never seen the value of revenue neutrality. We believe economic expansion is best achieved by tax cuts, not tax swaps. Having said that, if Trump is serious about targeting his relief to the middle class and letting wealthy one-percenters pay the freight … well, we’re not going to argue with that.
We’ll have to do some further digging on Trump’s proposals, but at first glance they certainly seem geared toward changing the current structure in such a manner as to empower the individual consumer – while extending lower tax rates on business income to sole proprietors and other small businesses.
Those are good things.
Now … do we agree certain Americans should pay no tax whatsoever? No, we do not. We believe a truly fair tax plan requires all Americans – even those at the lower end of the income spectrum – to chip in something.
Anyway … we encourage you to do some digging on Trump’s tax plan, too. And let us know your thoughts as you do.