(1) YUUUGGGE tax break for the Middle Class
- Households making less than $50k a year will pay nothing in federal income taxes, which gives tax relief for an additional 75 million households.
- Instead, those Americans will only have to fill out a new, one page form to the IRS, saying, and I quote from his website, "I win." This will save those 75 million families an average of $1000 a year.
(2) Simplifies Tax Code
- Trump is reducing the number of tax brackets from 7 to 4.
$300,001+ = 25%
$100,000 - 300,000 = 20%
$50,001 - $100,000 = 10%
$50,000 and lower = 0%
- The Alternative Minimum Tax (AMT) and the marriage penalty are gone.
- No business of any size will ever pay more than 15% of their business income in taxes, switching America from being taxing its business at the highest rates in the industrialized world, to the lowest.
(3) Eliminates tax loops holes on super wealthy
- That's right, the main pillar of the Democrat party is to tax the rich and remove their loopholes. Well, Trump is doing that.
- Trump wants to steepen the curve of the Personal Exemption Phaseout and the Pease Limitation on itemized deductions.
- Phasing out of the tax exemption on life insurance interest for high-income earners
- End the current tax treatment of carried interest for speculative partnerships that do not grow businesses or create jobs and aren't risking their own capital.
(4) Brings corporate profits back from Overseas
- There is an estimated $25 trillion in cash held by US companies overseas. The business have already paid taxes on that revenue in the foreign country and refuse to pay twice by bringing it back into the states.
- Trump solves this problem pretty easily: a one-time fee of 10% to bring the money back, instead of a ridiculous 40%. This is instantly bring in a much needed $2.5 Trillion back into the US.
(5) Plan is revenue Neutral
- All tax cuts are paid for by reducing and eliminating deductions and loopholes for the very wealthy
- Bringing $2.5 trillion of new revenue currently being hidden overseas, followed by ending the deferral of taxes on corporate income
- Reducing or eliminating corporate loopholes for special interests, as well as made unnecessary or redundant by the new lower tax rate on corporations and business income.
- Phase in reasonable cap on the deductibility of business interests expenses
(6) No more death tax
- One of the most egregious and criminal aspects of American government in the death tax. After paying taxes your entire life, when you die, the government takes half of whatever you have left!
- This is obviously gone with a Trump Presidency.
There are elements in this tax plan both conservatives and even liberals can get behind. Many un-biased economists like Larry Kudlow have praised the plan. So, get ready for months of mis-information and lies from the Washington Elite and the state run media to discredit this plan. Because, if Democrats and Independents find out this plan helps everyone, the election will be over and Donald Trump will be the President of the United States.
Read Trump's full tax plan here