Trump Tax Plan a Triumph of Showmanship Or Common Sense
Donald Trumps proposal to overload the tax code does fit the bill. However, it would hardly raise the revenue needed to fund the nations balance. Trump is trying to give the people what they want contrary to the peoples expectations. Trump believes that his words will pay the dues of his plan.
Trump revealed his new tax plan with a bang. Mixed with sleight of hand, exaggerating on the negative impact on the rich. In actuality, the plan would significantly reduce taxes on many business owners, lawyers, and bankers, and other wealthy professionals. The plan will reduce almost everyone's taxes, with the exception of a few investment fund managers who might receive a slight increase in their taxes.
Trumps new plan would exclude 75 million households from paying income tax, also including low income families and couples. Trumps plan would lower the top income tax rate from 39.6% to 25% and lower the corporate tax rate from 35% percent to 15%. Trump's new list of plans to raise enough revenue to cover the costs of his tax cuts, would be completely ineffective. Trump would help pay for the rate cuts with a one time 10% foreign revenue payment.
Trump's new broad tax cut plan, promises a lot and will definitely come at a high cost $$. In addition, his plan is vulnerable to loopholes which can be exploited and could derail the plan from coming forth into society.
- Do you agree with the authors position on Trumps new plan?
- If the plan were to be put into effect, would it be successful? why, or why not?
- What was Trump's intent when presenting his new tax cut plan to the public?
http://www.nytimes.com/2015/09/30/business/dealbook/trump-tax-plan-a-triumph-of-showmanship-over-common-sense.html?_r=0
4 comments:
I agree with the author and believe Trump’s plan will lead to increased national debt since he is greatly decreasing and, in some cases, completely eradicating taxes for basically the whole population. Though he claimed it would hurt the upper classes, his plan called for a decrease in their taxes from 40% to 25%. A one-time 10% foreign income tax on the deferred foreign earnings of United States multinational corporations could not make up for the millions lost by the population of the country. Even the addition of base-broadening proposals such as limitations on itemized and interest deductions and closing the carried interest loophole wouldn’t make up for it. Numerous sources have projected revenue loss from the plan. For example, the Tax Foundation predicts that it will decrease tax revenue by about $10 trillion in the next decade, even after taking into account economic growth. Trump, as always, refutes these various claims, though confidently, in extremely broad terms. He believes that much of the money would come from increased job growth and investments at home. "The economy's going to just be absolutely like a rocket," he said (CNN). Though some of Trump’s ideas were sensible and his intentions were to appeal to the majority of citizens, the plan seems to have backfired. He instead made his plan easy to dismiss due to its lack of specificity in loophole closers and lack of a tax that adds value to increase revenue. Additionally, his response seems to be lead by his campaign manager and not himself. When he does try to respond, his answers seem unsupported and unintelligent as we are beginning to see more often throughout the Republican Debates, which is something I personally would not want to see from a future president. This plan could have been treated as a serious proposal and act of leadership that would’ve boosted Trump’s standing in the polls; however, it seems to have become “just another exaggerated claim of a carnival barker”, as Fleischer states (WSJ).
http://www.cnn.com/2015/09/29/politics/donald-trump-tax-cost/
http://www.nytimes.com/2015/09/30/business/dealbook/trump-tax-plan-a-triumph-of-showmanship-over-common-sense.html?_r=0
Throughout this entire candidacy, Trump has had extreme views and opinions on how he would solve problems throughout the country. For example, on the idea of illegal immigrants, Trump proposed to build a wall between the United States and Mexico. In Trump's eyes, a wall is a suitable cause to keep the immigrants out. However, a wall would be extremely costly and ineffective. Trump's outlandish ideas continue on the basis of tax cuts. Moreover, his plan on taxes will lead to an increased national debt. Trump said the changes he wants to make to the U.S. tax code would not add to the annual federal budget deficit and the overall national debt because his plan would bring in new sources of revenue to the Treasury. One of the sources is a one-time tax of 10 percent on money corporations overseas that is brought back to the U.S, and companies are no longer to defer taxes on income earned overseas. According to US News, U.S. firms overseas are estimated to have more than $2 trillion. Furthermore, Gursimar touched upon an interesting point when she stated that Trump's responses seem to be lead by his campaign manager and not himself. I believe this raises a huge red flag and certainly does not help Trump earn popularity as people want the president to be an individual who generates their own responses in their own tone, rather than having their managers and team do a portion of the work for them. Taxes play an important role in a country and therefore if Trump took a more reasonable approach, this could have helped him gain support.
Source:
http://www.usnews.com/news/business/articles/2015/09/28/donald-trump-to-unveil-tax-plan-monday
I agree with the author's points that Trump's plan will come at a very high cost to the government, while also being susceptible to flaws and exploitation. The government would lose a significant amount of revenue because income tax would decrease from 39.6% to 25% and corporate tax would decrease from 35% to 15%. His proposed one-time 10% foreign revenue payment would not be sufficient to make up for the millions of dollars being lost through lowering income and corporate taxes. If this plan were put into effect, it would bring the country into further debt because so much revenue would be lost through the income and corporate taxes. "[Trump's] idea is to allow those at the bottom-most income bracket (singles making $25,00 or less and married couples making $50,000 or less) to pay no income taxes" (CNN). In my opinion, reducing the taxes of the bottom income bracket is very necessary and beneficial to helping the well-being of the people, so I think that this part of the tax proposal is very reasonable to get rid of their income tax overall. However, I still cannot support this proposal because Trump offers very little leeway on how to make up the funds that are not being collected from the bottom income bracket that would not have income tax anymore. In addition, I believe that Trump's intent to significantly lower the corporate taxes shows his bias toward assisting big businesses and feeding into corporate America.
Source:
http://www.cnn.com/2015/09/29/politics/donald-trump-tax-cost/
Post a Comment