Trump Plan Cuts Taxes for Millions

Middle class, businesses get break, but overseas profits would face a one-time 10% levy

 

Under the Trump plan, no federal income tax would be levied against individuals earning less than $25,000 and married couples earning less than $50,000. The Trump campaign estimates that would reduce taxes to zero for 31 million households that currently pay at least some income tax. The highest individual income-tax rate would be 25%, compared with the current 39.6% rate.

 

Many middle-income households would have a lower tax rate under Mr. Trump’s proposal, but because high-income households generally pay income tax at much higher rates, his proposed across-the-board rate cut could have a positive impact on them, too. For example, an analysis of Jeb Bush’s plan—taxing individuals’ incomes at no more than 28%—by the business-backed Tax Foundation found that the biggest percentage winners in after-tax income would be the top 1% of earners.

 

Mr. Trump’s plan appears designed to help him, as the GOP front-runner, cement his standing as a populist—though that message is complicated by the fact that the billionaire, like other Republican leaders, would eliminate the estate tax.

 

To pay for the proposed tax benefits, the Trump plan would eliminate or reduce deductions and loopholes to high-income taxpayers, and would curb some deductions and other breaks for middle-class taxpayers by capping the level of individual deductions, a politically dicey proposition. Mr. Trump also would end the “carried interest” tax break, which allows many investment-fund managers to pay lower taxes on much of their compensation.

 

A significant revenue gain would come from a one-time tax on overseas profits that could encourage U.S. multinational corporations to return an estimated $2.1 trillion in cash now sitting offshore, largely to avoid U.S. taxes. His proposal would impose a mandatory 10% tax on all of that money, even if the money stays overseas, but allow a few years for the tax to be paid. The Trump campaign estimates that many companies would choose to bring their money back home, boosting jobs and investment in the U.S.

 

http://www.wsj.com/articles/trump-plan-c...1443427200

 

Norquist blesses Trump's tax plan, brings 'Jobs, jobs, jobs'

 

http://www.washingtonexaminer.com/norqui...le/2572929

 

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Probably the best tax plan out, by far. It's not a fair tax (which, realistically, could never pass congress), but he's got the competition beat.

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sounds pretty good in theory i'm not enough of an economist to break down all of that jargon and take a guess at what would and wouldn't work

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Go Jags!
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A significant revenue gain would come from a one-time tax on overseas profits that could encourage U.S. multinational corporations to return an estimated $2.1 trillion in cash now sitting offshore, largely to avoid U.S. taxes. His proposal would impose a mandatory 10% tax on all of that money, even if the money stays overseas, but allow a few years for the tax to be paid. The Trump campaign estimates that many companies would choose to bring their money back home, boosting jobs and investment in the U.S.

This sounds nice, but similar things have been done before and it didn't lead to more jobs. It mostly resulted in companies buying back their own stock. 

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I'm not a huge Trump fan largely because he tends to be a jerk and I can see him insulting other foreign leaders or saying something to het himself in serious hot water. That said, this tax plan ain't' too shabby.

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'02

Eh... would never happen.  Remember where tax policy is created.

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There are 10 kinds of people in this world.  Those who understand binary and those who don't.

Why on Earth should 31 million households not pay any taxes at all? What an absurd idea.Those with no skin in the game become nothing more than a secure voting block for whomever can scream "a vote them is a vote to raise your taxes" loudest.

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“An empty vessel makes the loudest sound, so they that have the least wit are the greatest babblers.”. - Plato

Listen... All Trump does is tout his business acumen...

 

Why not put him in the position of Secretary of the Treasury?

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Redistribution is redistribution all trump is doing is dressing up the pig a little better then the democrates. Hes still attempting to buy low income votes with the whole you won't pay taxes sales pitch.


All production taxes are the same they penalize producers and reward consumers.

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Redistribution is redistribution all trump is doing is dressing up the pig a little better then the democrates. Hes still attempting to buy low income votes with the whole you won't pay taxes sales pitch.


All production taxes are the same they penalize producers and reward consumers.

 

What redistribution?

 

Dropping the corporate tax rate from 39% to 15% is a boon.

 

"An immediate "deemed repatriation" tax of 10 percent is assessed on the $2.5 trillion of U.S. company profits sitting overseas. Going forward, companies would no longer be able to defer U.S. double tax on profits earned overseas. According to the OECD, the U.S. business tax rate would fall from highest in the developed world to one of the lowest. When state rates are factored in, the U.S. would face the same tax rate as the United Kingdom, and lower tax rates than trading competitors China, Japan, Canada, Mexico, Germany, and France. We would be far below the developed nation average business marginal tax rate of 25 percent.The loss of deferral is troubling, but two elements should be kept in mind. First, the new 15 percent tax rate is far lower than the double tax companies face today. Second, businesses will be able to credit against this 15 percent U.S. tax any foreign income tax they have already paid overseas. With one of the lowest tax rates in the developed world, it's very unlikely much if any double taxation will, in fact, occur."

 

"Tax rates: Individual tax brackets of 0, 10, 20, and 25 percent (the top rate today is 39.6 percent). The "zero bracket" would apply to married couples' first $50,000 of income (half that for singles).Capital gains and dividends: By repealing Obamacare's savings surtax, the capital gains and dividends rate is reduced from 23.8 percent today to 20 percent under the Trump plan."

 

"It's also important to note that with a top ordinary income tax rate of 25 percent, the carried interest tax rate hike on "hedge fund guys" is fairly modest, rising from 23.8 percent today to 25 percent under the Trump plan. ATR opposes this tax increase.Business tax rate: The tax rate on corporate and non-corporate businesses is 15 percent, down from 35 percent today for corporations and 39.6 percent for pass-through firms."

 

So how are the producers being penalized again?

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He talked about this on 60 Minutes. He had very few specifics when pressed by the interviewer.

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Listen... All Trump does is tout his business acumen...


Why not put him in the position of Secretary of the Treasury?

What makes you think he'd take it?


Also, I want Trump in charge of the treasury about as much as I want Blaine Gabbert in charge of my offense.

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A bit confused what is the exact tax rate for middle & upper class?

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What redistribution?


Dropping the corporate tax rate from 39% to 15% is a boon.


"An immediate "deemed repatriation" tax of 10 percent is assessed on the $2.5 trillion of U.S. company profits sitting overseas. Going forward, companies would no longer be able to defer U.S. double tax on profits earned overseas. According to the OECD, the U.S. business tax rate would fall from highest in the developed world to one of the lowest. When state rates are factored in, the U.S. would face the same tax rate as the United Kingdom, and lower tax rates than trading competitors China, Japan, Canada, Mexico, Germany, and France. We would be far below the developed nation average business marginal tax rate of 25 percent.The loss of deferral is troubling, but two elements should be kept in mind. First, the new 15 percent tax rate is far lower than the double tax companies face today. Second, businesses will be able to credit against this 15 percent U.S. tax any foreign income tax they have already paid overseas. With one of the lowest tax rates in the developed world, it's very unlikely much if any double taxation will, in fact, occur."


"Tax rates: Individual tax brackets of 0, 10, 20, and 25 percent (the top rate today is 39.6 percent). The "zero bracket" would apply to married couples' first $50,000 of income (half that for singles).Capital gains and dividends: By repealing Obamacare's savings surtax, the capital gains and dividends rate is reduced from 23.8 percent today to 20 percent under the Trump plan."


"It's also important to note that with a top ordinary income tax rate of 25 percent, the carried interest tax rate hike on "hedge fund guys" is fairly modest, rising from 23.8 percent today to 25 percent under the Trump plan. ATR opposes this tax increase.Business tax rate: The tax rate on corporate and non-corporate businesses is 15 percent, down from 35 percent today for corporations and 39.6 percent for pass-through firms."


So how are the producers being penalized again?

You typed it all out and don't understand that group A pays 25% and group B pays 0% you are penalizing group A for making more than group B.


It's still a progressive production tax it's just dressed pretty.

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A bit confused what is the exact tax rate for middle & upper class?

 

Four tax brackets instead of seven: Right now there are seven federal income tax brackets. Trump wants to get it down to four. The first would be a zero-percent rate for the households described above. Individuals making $25,001 to $50,000 (or couples making $50,001 to $100,000) would pay 10 percent in federal income taxes and keep most of their current exemptions and deductions. Those making $50,001 to $150,000 (or couples making $100,001 to $300,000) would pay 20 percent and keep more than half of their current deductions. The highest tax bracket would be 25 percent and apply to those making more than $150,001 per year, along with couples making more than $300,001. Those in the highest tax bracket would see most of their deductions disappear.

 

 

You typed it all out and don't understand that group A pays 25% and group B pays 0% you are penalizing group A for making more than group B.


It's still a progressive production tax it's just dressed pretty.

 

Bro, I would love a fair tax. But lets think reasonably here. You will never, ever get non-progressive tax reform to pass through congress. It just wont happen. You will never convince the majority of the house and senate that the wealthy should pay the same income rate as your average American (in this case, nothing. Also why the flat tax would never pass.). You will also never convince them to abolish the corporate tax. It just wont happen. So you work with what you have, and that is a progressive tax.

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Four tax brackets instead of seven: Right now there are seven federal income tax brackets. Trump wants to get it down to four. The first would be a zero-percent rate for the households described above. Individuals making $25,001 to $50,000 (or couples making $50,001 to $100,000) would pay 10 percent in federal income taxes and keep most of their current exemptions and deductions. Those making $50,001 to $150,000 (or couples making $100,001 to $300,000) would pay 20 percent and keep more than half of their current deductions. The highest tax bracket would be 25 percent and apply to those making more than $150,001 per year, along with couples making more than $300,001. Those in the highest tax bracket would see most of their deductions disappear.

 

 

 

Bro, I would love a fair tax. But lets think reasonably here. You will never, ever get non-progressive tax reform to pass through congress. It just wont happen. You will never convince the majority of the house and senate that the wealthy should pay the same income rate as your average American (in this case, nothing. Also why the flat tax would never pass.). You will also never convince them to abolish the corporate tax. It just wont happen. So you work with what you have, and that is a progressive tax.

 

working with what we have is how we've gotten stuck with the temporary income tax for near a century. Radical changes are needed or it's just a different shade of lipstick on the pig. Trump is pulling off one of the greatest con jobs of the century on the American Right, and they're buying it hook line and sinker.

 

Trump is a big government corporatist, heck he's not even a social conservative. Of course he supports a progressive tax scale it's how they keep the peasants happy. Fair tax or bust, I don't even support the flat tax. The state has NO right to my money before I ever see it. I'm done compromising. 

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working with what we have is how we've gotten stuck with the temporary income tax for near a century. Radical changes are needed or it's just a different shade of lipstick on the pig. Trump is pulling off one of the greatest con jobs of the century on the American Right, and they're buying it hook line and sinker.

 

Trump is a big government corporatist, heck he's not even a social conservative. Of course he supports a progressive tax scale it's how they keep the peasants happy. Fair tax or bust, I don't even support the flat tax. The state has NO right to my money before I ever see it. I'm done compromising. 

 

Well then I hope you are ready to support a fascist regime because no way that tax reform makes it through congress without a political coup and forced reform. Maybe we can even get someone like Pinochet who will actually step down! :devil:

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The more I think about it, the more I like the idea of a consumption tax.   The more money you spend, the more tax you pay.   It seems pretty fair to me.   It would have the effect of taxing the wealthy more than the poor, because the wealthy would spend more money.   Plus, all that black market money which is currently evading tax would get taxed as it is spent.  

 

In Taiwan, every cash register is connected to the national lottery system, so every customer demands a receipt which has a free lottery entry on it.   So enforcement is in the hands of the public. 

 

No fuss, no muss. 

 

What's wrong with that idea? 

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The more I think about it, the more I like the idea of a consumption tax.   The more money you spend, the more tax you pay.   It seems pretty fair to me.   It would have the effect of taxing the wealthy more than the poor, because the wealthy would spend more money.   Plus, all that black market money which is currently evading tax would get taxed as it is spent.  

 

In Taiwan, every cash register is connected to the national lottery system, so every customer demands a receipt which has a free lottery entry on it.   So enforcement is in the hands of the public. 

 

No fuss, no muss. 

 

What's wrong with that idea? 

 

Nothing, I think its great too. You don't even have to tax food and necessities.

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Nothing, I think its great too. You don't even have to tax food and necessities.

 

I agree. Make it so. *hand wave*

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“An empty vessel makes the loudest sound, so they that have the least wit are the greatest babblers.”. - Plato

Eh... would never happen.  Remember where tax policy is created.

 

Bingo.  He'd have to have a congress willing to work with him, and I'm fairly confident that won't be happening.

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Never argue with idiots. They drag you down to their level and beat you with experience.