Donald Trump on His Tax Plan: ‘Zero Rate’ for Some
Donald Trump revealed several details from his sweeping tax reform plan during an interview on Sunday. Included were plans to cut taxes for corporations, implement a “zero rate” tax rate for low-income families, and tax increases for the wealthy.
Individuals earning less than $25,000 and couples earning a combined $50,000 will be taxed at 0 percent, while the wealthiest Americans will be taxed at 25 percent.
Trump’s adviser Michael Cohen told CNN on Monday, “More Americans will be keeping their money in their pocket as opposed to sending it to Uncle Sam.”
“Republicans may not like the full extent of Mr Trump’s tax plan, but I’ll tell you who’s going to like it: all Americans — Republicans, Democrats, all the voters,” Cohen told CNN’s Alisyn Camerota and Chris Cuomo on “New Day” Monday. “Because, again, they’re going to keep the money that they earn in their pocket. And he’s going to simplify the tax code.”
Trump sympathized with the middle class and how they are being decimated by the current economic climate of the United States.
“It’s a substantial reduction for the middle-income people. Because our middle class…is being absolutely decimated. … I think it’ll be a great incentive for corporations,” Trump said in the “60 Minutes” interview.
“I’m a pretty good Republican. But I will tell you this, I do have some differences. I don’t want to have certain people on Wall Street getting away with paying no tax,” Trump said after suggesting that he would eliminate some “unfair deductions.”
Trump has repeatedly decried the low tax rates “hedge fund guys” enjoy and pledged to increase their tax burden, although he didn’t cite them in the “60 Minutes” segment. In the Journal report, Trump promised to end the “carried interest” tax break, which would increase the tax burden on such forms of income.
Under the current system, investments are taxed at lower rates than traditional income like wages.
While appearing to go against the ideological grain of his party, Trump said that he is confident his plan will help unleash economic growth.
“Overall, it’s going to be a tremendous incentive to grow the economy and we’re going to take in the same or more money. And I think we’re going to have something that’s going to be spectacular,” Trump said. “We’re going to grow the economy so much.”
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Photo credit: Express.co.uk.