Donald Trump has recently posted his tax plan on the official site and left many people in shock.
As the website states, Trump’s idea about the taxes is to “reduce taxes across the board — especially for working and middle-income Americans.” The vision also stated that “no one will pay so much that it destroys jobs or undermines our ability to compete.”
Although the Democrats thought otherwise, Trump plans to “eliminate special interest loopholes, make our business tax rate more competitive to keep jobs in America” and create “new opportunities and revitalize our economy.”
What is even more amazing is that his plan shall “reduce the cost of child care by allowing families to fully deduct the average cost of child care from their taxes … including stay-at-home parents.”
Below you can see Trump’s plan for yourselves:
Individual: Trump’s plan will collapse the current seven tax brackets into three brackets.
Brackets & Rates for Married Joint Filers:
Less than $75,000: 12%
More than $75,000 but less than $225,000: 25%
More than $225,000: 33%
Brackets for single filers are one half of these amounts.
As you can notice from the above mentioned plan, the existing capital gains rate structure shall be kept by using the tax brackets, while this will tax carried interest as regular income.
From Obamacare tax, about 3.8 percent shall be repealed together with the alternative minimum tax.
As The Week claims, the Trump idea of helping millions of struggling families will become reality. Also, The New York Times stated that certain Democrats working in Congress will join Trump in this mission and deduct some of the new tax plans and credits from the less fortunate families.
As far as businesses go, Trump assures to “lower the business tax rate from 35 percent to 15 percent and eliminate the corporate alternative minimum tax.”
This rate applies to all sorts of businesses, the website states, with small and large business who are benefiting from this.
Here are Trump’s proposals with the current rates as published by the Tax Foundation to compare:
|Rate||Single Filers||Married Joint Filers||Head of Household Filers|
|$0 to $9,275||$0 to $18,550||$0 to $13,250|
|$9,275 to $37,650||$18,550 to $75,300||$13,250 to $50,400|
|$37,650 to $91,150||$75,300 to $151,900||$50,400 to $130,150|
|$91,150 to $190,150||$151,900 to $231,450||$130,150 to $210,800|
|$190,150 to $413,350||$231,450 to $413,350||$210,800 to $413,350|
|$413,350 to $415,050||$413,350 to $466,950||$413,350 to $441,000|
The general idea is to eliminate the head of household filing status and turn the seven brackets into three, and to offer in the meantime zero percent tax on low income families.