Donald Trump News 2015: Trump's tax plan - Taxes to be slashed for both rich and poor
In what some experts call as a "conventional" tax plan, Donald Trump has vowed to cut income taxes for millions of Americans on the wealthier branch of society, while also slashing rates for the poor and business owners.
Trump's plan basically aims to reshape the tax code largely by cutting down the seven income brackets to four, meaning rates for the rich, poor, and businesses will be less and a huge number of loopholes and deductions will be eliminated.
At a press conference at Trump Tower, the leading Republican said, "It will provide major tax relief for middle income and for most other Americans. There will be a major tax reduction."
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According to CNN, families with the smallest paychecks will most probably be the largest beneficiaries, meaning Americans who make less than $25,000 ($50,000 for married couples) would likely pay no income taxes at all under Trump's tax code revamp.
However, the outlet notes that many of the families mentioned in the plan already pay no federal taxes. Tax Policy Center estimates reveal that about 45 percent of American households actually don't owe a dime of federal income taxes under the existing tax code. Trump acknowledged the report and said his plan will make sure more than 50 percent of households will not be required to pay federal income tax.
Alan Cole, an economist at the Tax Foundation, said the plan is selling "one of the better features" of the current tax code, further noting that adding to the number of people who don't have to pay income tax is just "expanding the number of people."
Aside from cutting rates for middle income families, the proposal also gives a pat on the back of the wealthiest Americans as it requires individuals who make $150,001 and more to pay an income tax rate of only 25 percent, which is a huge cut from the current highest rate of almost 40 percent.
While several news outlets state that Trump's plan is actually the plan of many others who have vied for the highest position in the United States, the business mogul insisted that "It'll simplify the tax code, it'll grow the American economy at a level that it hasn't seen for decades."
