Donald Trump Plans Major Tax Reform

By Nicholas Zelinsky,
Money and Investing Writer

trumptax
Donald Trump, being the business man he is, has stood out in his run for the presidential election.

One clear way he stands out is the fact that he is not your typical candidate. Where his fellow candidates follow a certain mannerism that is subject to that of a presidential candidate, Donald Trump sticks with an attitude similar to the one he displays on his television show “The Apprentice.”

This has caused varied opinions on Trump from some loving him to some despising him.

His business knowledge would serve him well in balancing a budget for the United States and hopefully bring the country out of the deficit it is currently faced with.

Trump has taken his stance on tax reform, and has taken it to a whole other level with tax cuts.

In Trump’s tax plan, the now seven different tax brackets that tax payers can fall into would be simplified to only four.

The striking fact about Trump’s plan is that the lowest bracket Americans can fall into does not require them to pay any taxes.
As Trump says in his tax plan on his campaign website, “When the income tax was first introduced, just one percent of Americans had to pay it. It was never intended as a tax most Americans would pay.”

As he also points out in his position on tax reform, this plan would eliminate 75 million households from having to pay federal income tax.

This bottom category consists of single filers that make less than $25,000 a year, married filers that make less than $50,000 a year, and heads of households that make less than $37,500 a year.

Tax payers who fall into this bottom bracket would receive a single page document that they fill out to send back to the government. In Trump’s words, this would be an “I Win” letter to the IRS.

Trump’s plan for these tax cuts is to put more money into American citizens’ pockets and encourage more spending, and investing, which would help boost the economy.

Trump also plans on eliminating tax loopholes for the wealthy individuals and companies to help bring in more taxable income.
The hope is also for major companies to bring money back into the United States and bring in more taxable income from the companies.

Companies move money overseas because tax rates in other countries are significantly less than they are in America.

If this plan is successful, there would be no reason for companies to move  funds overseas, and the government could tax the money that it is, as of now, not receiving a nickel of.

The plan also eliminates loopholes that some of the wealthiest Americans use to avoid paying tax through deductions.

The tax cuts would make those deductions unnecessary, bringing in yet another chunk of cash that the government would not be receiving otherwise.

The taxation on the members of this top bracket would receive a tax cut, going from their normal 28-39.6 percent, to a mere 25 percent.

Trump’s hope is that this tax cut will be made up for by blocking tax loopholes.

There is only one problem with Trump’s plan.

According to a think tank analysis, these tax cuts could prove to have the opposite affect that Trump would be hoping for.

If Trump implemented this tax reform for the United States, it could increase the deficit by almost $10 trillion dollars over the next decade.

This prediction takes into account the potential growth that could spur into the economy.

However, this is also assuming that Trump does not cut federal spending.

When he announced his plans for tax reform, he said, “There is so much waste in government.”

This does imply that the government is spending where it may not be necessary, however he did not specify which areas those are, or what areas of the budget he would reduce spending in.

Donald Trump’s method is different. He has tax cuts significantly lower than his fellow Republican candidates, and does not go through the conventional method of a normal presidential candidate when it comes to handling his or her public image during a presidential campaign.

However he is a business man, and has made it very clear that his main goal is to make America great again.

Trump is where he is today because of the decisions he made with his money, decisions which have made him one of the wealthiest men in America.

A version of this article appeared in the Tuesday, October 6th print edition.
Contact Nicholas at
nicholas.zelinsky@student.shu.edu

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