Trump Tax Plan — Simply Brilliant


When Trump talks about the current tax-and-spend system as an exercise in needless complexity and irresponsible folly, he has a large, receptive audience.

Trump’s delivery in his Monday press conference was perfectly in sync with the mood of his tax-reform document,
The Trump plan eliminates the income tax for over 73 million households. 42 million households that currently file complex forms to determine they don’t owe any income taxes will now file a one page form saving them time, stress, uncertainty and an average of $110 in preparation costs. Over 31 million households get the same simplification and keep on average nearly $1,000 of their hard-earned money.

Trump’s plan also knocks out the “death tax” – it’s referred to by those very words in the plan. “You earned and saved that money for your family, not the government. You paid taxes on it when you earned it,” the plan declares. Later, Trump flatly declares, “The death tax punishes families for achieving the American dream. Therefore, the Trump plan eliminates the death tax.”

Now that’s how you sell a conservative proposal with populist techniques. Watching Trump argue this point with Democrats would be enormously entertaining. It’s Halloween. He’ll portray them as ghouls who dig up dead bodies to shake the corpses down for pocket change by the time he’s done.

The simplification aspect of Trump’s plan comes from boiling the current seven rates down to four: zero percent up to $25,000, 10 percent up to $50k, 20 percent up to $150k, and 25 percent beyond that. He also lets single filers who make less than $50k pay zero percent on capital gains and dividends, to encourage small investors. There are no penalties for married filers, and a bump of roughly 50 percent for heads of household (so the zero percent rate extends to $37.500 instead of $50,000 for them, for example.) Trump was very proud of eliminating the marriage penalties built into the tax code in his press conference.

Source: Breitbart

Trump makes a very big deal about his business tax reforms. No business of any size, from a Fortune 500 to a mom and pop shop to a freelancer living job to job, will pay more than 15% of their business income in taxes. This lower rate makes corporate inversions unnecessary by making America’s tax rate one of the best in the world.
That is Business Sense talking.

 



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