"It will be simple. It will be easy. It will be fair," the Republican hopeful says.
Presidential candidate Donald Trump unveiled his tax plan yesterday that would slash rates for the middle class and the wealthy.
“It will provide major tax relief for middle income and for most other Americans,” Trump said Monday at a news conference announcing his tax plan. “There will be a major tax reduction. It’ll simplify the tax code, it’ll grow the American economy at a level that it hasn’t seen for decades.”
Want to learn ways to save on taxes? Check out the Small Business Tax Guide now.
Trump’s tax plan would:
- Eliminate the income tax for individuals and couples in the low-income tax bracket; a “zero-rate” for individuals earning less than $25,000 and for couples earning less than $50,000
- Eliminate the “carried interest loophole” used by hedge fund managers, thereby requiring them to pay more in taxes
- Cut the corporate tax to 15 percent
- Lower the income tax rate from nearly 40 percent to 25 percent for individuals making more than $150,000 and couples making more than $300,000
- Simplify the tax code with four tax brackets, down from the current seven brackets
- Offer small business owners a special tax rate of 15 percent, less than half of what they must pay now
- Lower the top capital gains rate to 20 percent, from 23.8 percent
- Eliminate the alternative minimum tax
Trump said lowering the corporate tax rate to 15 percent will incentivize companies to remain in the U.S. rather than try to avoid high tax payments by moving headquarters overseas.
Trump proposes to put a cap in individual deductions, with the wealthy facing the biggest losses. His plan would also wipe out many corporate deductions.
Want to hear about other candidates’ tax plans? Read “Jeb’s Plan to Fix Taxes” and “What Ben Carson’s Flat-Rate Tax Plan Would Really Look Like.”
*Note: This news coverage does not equate to an endorsement of any candidate by NFIB.