Donald Trump has finally come out and announced his tax plan on Monday. He promised to drastically cut income taxes for Americans across the wealth spectrum while closing loopholes popular among Wall Street elite. Trump made the announcement during a press conference at Trump Tower in New York. He says the plan will simplify the tax code and grow the American economy at a level that it has not seen in decades.
The plan comes as Donald Trump has been attacked for not providing details about how his administration would govern. One of the biggest beneficiaries appears to be families that draw the smallest paychecks. Individuals that make less than $25,000 (and $50,000 for married couples) would pay no income taxes under Trump’s plan.
However, the proposal would also be a boon for the wealthiest Americans like Trump — the top bracket includes individuals making $150,001 and more and couples making $300,001 and more — who would pay an income tax rate of 25%. That’s a dramatic cut from the current top rate of close to 40%. Trump declined to comment on how his tax plan would affect his personal tax rate but said: “We’re reducing taxes, but believe me, there will be people in the very upper echelon that won’t be thrilled with this.”
He also refused to mention how much taxes he currently pays only admitting that he fights like hell to pay as little as possible. Trump will now have to answer how he would raise enough revenue to offset his plan’s deep tax cuts. The candidate says he would make up for the difference in a number of ways: killing certain deductions for the rich and creating incentives for U.S. companies to bring back cash currently held overseas, thereby boosting growth at home.
Trump’s plan strongly mirrors that of former Florida Governor Jeb Bush’s plan. Bush released his plan earlier this month which also reduces the number of income tax brackets to three from the current seven. The highest bracket would be 28% while the lowest would be 10%. Bush also proposed to lower the current corporate tax rate from 35% to 20%. Trump has continued to make the distinction between investors who work in real estate and those within Wall Street. Hedge fund managers are those who he says fall in the category of special interests backing some of his best-funded rivals.
I know them. They all are supporting Jeb Bush and Hillary Clinton,” Trump told CNN at a campaign stop in Nashville, Tennessee, last month. “They make a lot of money and a lot of it is luck. They pick a stock and all of a sudden they make a lot of money. I want the hedge fund guys to pay more taxes.”
Former Secretary of Hillary Clinton has been hitting Wall Street tax breaks since the first days of her campaign, as she’s faced pressure from progressive Democrats to embrace a more populist agenda. Antagonism towards Wall Street is a central message of Clinton’s rivals like Vermont Sen. Bernie Sanders and former Maryland Gov. Martin O’Malley.