Trump Tax Plan
Trump’s “plan” is apparently to lower everybody’s rates, which sounds like standard Republican pro-rich pro-big-business fiscally irresponsible tax policy.
Trump also proposes a foreign tax repatriation holiday with a rate of 10%, which seems to me like rewarding corporations for their previous bad behavior in keeping the money overseas in the first place in hopes that eventually pro-big-business Republicans would give them a tax holiday.
Trump also proposes to end the “death tax” which is a huge giveaway to the richest Americans.
Trump talks about eliminating deductions, but the two biggest deductions, for home mortgage interest and charitable deductions, will remain.
On the positive side, he proposes: “An end to the deferral of taxes on corporate income earned abroad. Corporations will no longer be allowed to defer taxes on income earned abroad, but the foreign tax credit will remain in place because no company should face double taxation.” That closes a big loophole.
I also think that the 0% marginal rate for low incomes is a good idea as well.
But overall, I am disappointed with the Trump Tax Plan. Trump claims that the tax plan is revenue neutral because he’s going to be eliminating so many loopholes and deductions (and it’s an absolutely great idea to eliminate loopholes and deductions), but with all of the rates being lowered and the estate tax being abolished, that sounds very suspicious. Furthermore, we have a budget deficit, so a responsible tax plan would raise taxes rather than be revenue netural.