Donald Trump (Tax Reform)
Revision as of 17:01, 25 January 2016 by imported>Ed
Trump's Tax Reform (source) agenda seeks to fulfill four goals: (DTW)
- Tax relief for middle-class Americans
- Simplify the tax code
- Grow the American economy
- Don't add to Debt or Deficit
Personal
- An individual filing single that has earned less than $25,000 will not pay any income tax. (DTW-TR) [1]
- An individual filing head of household that has earned less than $37,500 will not pay any income tax. (DTW-TR)
- Couple married filing jointly that have earned less than $50,000 will not pay any income tax. (DTW-TR)
- Eliminate the marriage penalty (DTW-TR)
- Eliminate Alternative Minimum Tax (DTW-TR)
| Income Tax Rate | Long Term Cap Gains/ Dividends Rate | Single Filers | Married Filers | Heads of Household |
| 0% | 0% | $0 - $25,000 | $0 - $50,000 | $0 - $37,500 |
| 10% | 0% | $25,001 - $50,000 | $50,001 - $100,000 | $37,501 - $75,000 |
| 20% | 15% | $50,001 - $150,000 | $100,001 - $300,000 | $75,001 - $225,000 |
| 25% | 20% | $150,001+ | $300,001+ | $225,001+ |
Corporate
- Corporate tax rate reduced to 15%, regardless of business size. (DTW-TR) Current rate hovers ~39.1%[2]
- Companies are required to bring their funds back from overseas accounts and pay a 10% tax on those funds. Funds used for overseas operating activities are exempt. (DTW-TR)
Funding for Tax Cuts
Trump pledges to propose alternative ways to keep revenue stable whilst reducing taxes. (DTCW-TR)[3]
- Eliminate loopholes and deductions for the very rich. Steepening the curve of the Personal Exemption Phaseout and the Pease Limitation on itemized deductions. (DTW-TR)
- 10% repatriation tax for corporate funds located overseas. (DTW-TR)
- End the deferral of taxes on corporate income earned abroad. (DTW-TR)
- Phase in a "reasonable cap" on the deductibility of business interest expenses. (DTW-TR)[4]
