Donald Trump’s tax plan would be the biggest reduction in tax rates since the 1986 Tax Reform Act under Ronald Reagan, and like the Gipper’s reforms, this plan would cover the costs by closing loopholes. Bravo.
It’s not as strong as Rand Paul’s 14.5 percent flat tax, but it’s high octane for the economy.
Mr. Trump would cut tax rates across the board. The highest income tax rate would shrink from about 40 percent under current law to 25 percent. The capital gains tax would be reduced to 20 percent from 23.8 percent.
The estate tax, now at 40 percent, would fall to zero. This plan also eliminates the hated alternative minimum tax and the marriage penalty tax imposed on working married couples.
Best of all is his call for a 15 percent corporate tax – down from the world’s highest rate of 35 percent. The US would go from the highest tax rate to nearly the lowest on businesses. This will bring companies back to America. That’s smart and pro-growth.
Mr. Trump’s rhetoric on growth was refreshing too coming from a candidate who over the last few months has sounded more populist and even progressive than conservative when it comes to taxes and jobs. He says the new businesses will pay more taxes and he’s right. Foreign companies don’t pay taxes here.
On a negative note, I dont like taking 70 million Americans off the tax rolls. That’s a bad idea because it makes government free to a large portion of the population. We don’t want the top 30 percent paying all the taxes.
But it’s a job creating plan. Welcome to the supply side, Mr. Trump.
Photo Credit: Michael Vadon