Donald Trump: Low-income people will file a one-page form with the IRS that says, 'I win'

Republican presidential front-runner Donald Trump released his plan to reform the nation’s tax code on Monday during a press conference at Trump Tower.

One of the most notable elements of the plan: Those who make less than $US25,000 (or $US50,000 for joint filers) will pay no income taxes.

What will they do instead? File a one-page form with the IRS that says, “I win.”

From the tax plan:

If you are single and earn less than $US25,000, or married and jointly earn less than $US50,000, you will not owe any income tax. That removes nearly 75 million households — over 50% — from the income tax rolls. They get a new one page form to send the IRS saying, “I win,” those who would otherwise owe income taxes will save an average of nearly $US1,000 each.

Trump’s plan would also condense the number of income-tax brackets from seven to four — 0%, 10%, 20%, and 25% for the highest earners. It also takes aim at the so-called “carried interest” loophole.

NOW WATCH: 5 of the richest countries on Earth are in the Middle East, and they won’t take any refugees from their war-torn neighbours

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.