Trump's Revolutionary Tax Plan
Republican presidential frontrunner Donald Trump released his tax plan Monday. While the billionaire businessman was expected to offer up a plan which aids America’s top earners, Trump has once again surprised the political world with a plan focused on building up the middle class.
Aiming to reduce tax rates for corporations and the middle class, Trump’s tax plan has received great praise from both Democrats and Republicans. Still a top earner himself, Trump will eliminate tax deductions for the country’s wealthiest earners.
“There will be a major tax reduction, it will simplify the tax code, it will grow the American economy in ways we have not seen for decades,” Trump said at a press conference at Trump Tower.
According to the plan, there will be just four levels – 25 percent, 20 percent, 10 percent and zero. Single individuals making $25,000 or less a year and couples filing jointly who have a combined annual income of $50,000 or less would pay no federal income taxes under Trump’s plan. Those making more would graduate up the scale based on their earnings.
Trump joked at one point that his plan will “cost me a fortune.”
While some top earners, specifically in Wall Street, might initially be upset by the code, businesses would pay a maximum rate of 15 percent, a steep drop from the top corporate rate of 35 percent. With the additional cuts on the middleclass tax rate and corporate tax, Trump believes everyone will eventually benefit from this plan.