Campaign 2016: Trump’s tax plan

Campaign 2016: Trump’s tax plan

Republican presidential nominee Donald Trump today unveiled a tax plan in an address before the New York Economic Club.

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According to Trump’s speech, the tax plan would provide a $4.4 trillion tax cut (or a $2.6 trillion loss in revenues when dynamic growth models are applied). Among the provision in Trump’s tax plan are the following proposals:

  • A 15% corporate tax rate
  • Elimination of the corporate alternative minimum tax
  • Deemed repatriation of corporate profits held offshore at a one-time tax rate of 10%
  • Elimination of “most” corporate tax expenditures except for the research and development (R&D) credit
  • Full expensing of capital investment by firms engaged in manufacturing in the United States and that elect to forfeit the deductibility of corporate interest expenses
  • Various deductions, credits, and income exclusions related to childcare expenses and employer-provided childcare benefits
  • Individual tax rates of 12%, 25%, 33%
  • Repeal of the 3.8% surcharge applicable to investment income of some taxpayers
  • Subject carried interest income to ordinary income tax rates
  • Cap individual itemized deductions at $200,000 for joint filers and $100,000 for single filers
  • Repeal of the estate transfer tax, with modified taxation of unrealized capital gains

A summary of the plan is available on the Trump campaign’s website.

 

Read TaxNewsFlash-United States for prior discussions of the tax proposals of the presidential candidates of the two major political parties—Donald Trump and Hillary Clinton.

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