Donald Trump (Donaldjtrump.com)
While the tax plan unveiled by Republican presidential front-runner Donald Trump on Monday would entirely eliminate income taxes for millions of Americans and lower the rate for most income earners, it calls for higher rates than he proposed in his 2011 book.
Trump’s new plan establishes a simpler tax code with four brackets – 0, 10, 20 and 25 percent – instead of the current seven.
But aside from the first bracket, the plan proposed in his book “Time to Get Tough: Making America #1 Again” calls for lower tax rates.
Tax guru Grover Norquist offers a solution in which America thrives and Americans keep more of their hard-earned cash in “End the IRS Before It Ends Us: How to Restore a Low Tax, High Growth, Wealthy America”
Trump’s presidential tax proposal revealed Monday would eliminate federal income taxes on individuals earning less than $25,000 and married couples earning less than $50,000.
His new plan:
Trump’s latest plan also abolishes the death tax.
The candidate says his plan can be paid for by reducing or eliminating deductions and loopholes available for the highest income earners; establishing a one-time repatriation of corporate cash held overseas at a 10 percent tax rate; and putting an end to the deferral of taxes on corporate income earned overseas.
On his campaign website, Trump hails his plan as the “lowest tax rate since before World War II.”
In his 2011 book, the billionaire outlined a plan to completely transform the tax code with a uniform proposal for all Americans to pay lower taxes.
At the time, Trump labeled the revenue prescription his 1-5-10-15 income-tax plan.
Here’s what Trump proposed as his income-tax plan in 2011:
- Those making up to $30,000 will pay 1 percent.
- Income from $30,000 to $100,000 is assessed a flat 5 percent tax.
- $100,000 to $1 million income will be taxed at 10 percent.
- $1 million or above will be taxed 15 percent.
“It’s clear and fair,” wrote Trump. “Best of all, it can be filled out on the back of a postcard and will save Americans big bucks on accountants and massive amounts of time wasted attempting to decipher the tax code.”
In the book, Trump called for companies that outsource jobs overseas to be hit with a 20 percent tax hike. The billionaire also suggested lowering to zero the tax rate for companies that return to the U.S. after outsourcing overseas.
Neither policy prescription made it in his 2016 presidential tax plan.