onald Trump on Monday released a comprehensive plan to reform the nation’s tax code, one he claims would eliminate income taxes for 72 million households and make filing taxes much simpler and more equitable.
The proposal keeps with many of the ideas that Trump has cited vaguely on the campaign trail over the last several months — including eliminating the estate tax, closing some tax loopholes, and attempting to simplify the tax code.
Despite some of Trump’s more populist rhetoric about raising taxes on the highest earners, Trump’s plan has plenty for wealthy earners to like — including a plan to reduce the top income-tax rate to 25% and his proposal to eliminate the estate tax.
Many of his proposals are not too far off from other Republican candidates who have also released their tax plans. Former Florida Gov. Jeb Bush (R), for example, has also targeted the so-called “carried interest” loophole that has traditionally benefited investment managers.
“I’m not a populist, I’m a man of great common sense,” Trump said at a press conference in New York on Monday.
Trump’s tax paper is the third detailed policy proposal plan that he’s released since announcing his bid for the presidency earlier this year.
The real-estate magnate first published a controversial policy paper on immigration in August. Among many prescriptions, it proposed deporting the approximately 11 million immigrants living in the US illegally and building a southern border wall that he claims the Mexican government would pay for.
Here are some of the main points from Trump’s tax plan:
- Eliminate income tax entirely for some Americans. Trump proposes getting rid of taxes for single workers who earn less than $US25,000 per year, as well as married couples that earn less than $US50,000. Trump’s plan actually says that these people would get a “one page form to send the IRS saying, ‘I win.'”
- Eliminate some tax brackets. Trump proposes scaling back to four income tax brackets: 0%, 10%, 20%, and 25%. The plan significantly lowers the highest income tax rate from 39% for the highest earners. Bush has a similar plan that would create only three brackets.
- Lower business income tax rate to 15% or lower. “No business of any size, from a Fortune 500 to a mum and pop shop to a freelancer living job to job, will pay more than 15% of their business income in taxes,” Trump’s plan says.
- Eliminate estate tax. “The death tax punishes families for achieving the American dream. Therefore, the Trump plan eliminates the death tax,” Trump’s plan says.
- Reducing loopholes and deductions. Trump says that in exchange for lowering income taxes for individuals making over $US150,000 and married couples making a combined $US300,000, he’d eliminate many tax loopholes and deductions for top earners. The real-estate mogul also suggests that the carried-interest loophole would be eliminated entirely.
You can check out the full plan here.
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