Donald Trump’s tax reform plan can–quite literally–be summed up in two words: “I win.”
For many Americans, all they would file with the IRS is a one page form declaring “I win,” with zero tax due.
In a press conference Monday at New York City’s Trump Tower, the real estate mogul promised that his plan will “simplify the tax code, grow the American economy at a level that it hasn’t seen for decades,” without adding to America’s debt or budget deficit.
“It’s a tax reform that I think will make America strong and great again,” Trump said, adding that the plan will provide ”major tax relief for middle income and most other Americans.”
Trump’s tax plan includes an “I win” provision:
If you are single and earn less than $25,000, or married and jointly earn less than $50,000, you will not owe any income tax. That removes nearly 75 million households – over 50% – from the income tax rolls. They get a new one page form to send the IRS saying, “I win,” those who would otherwise owe income taxes will save an average of nearly $1,000 each.
For other Americans, the plan sets up four tax brackets ranging from zero percent to 25 percent. “This new tax code eliminates the marriage penalty and the Alternative Minimum Tax (AMT) while providing the lowest tax rate since before World War II,” the plan states.
“It reduces or eliminates most of the deductions and loopholes available to special interests and to the very rich,” Trump said, adding, “In other words, it’s gonna cost me a fortune.”
Striking at the rich hedge fund managers, Trump said his plan will end favorable tax treatment for “speculative partnerships that do not grow businesses or create jobs.”
“It’s all about business. It’s all about jobs,” he continued. No business will pay more than 15 percent of its business income in taxes, regardless of size, Trump said, while eliminating most deductions that he claims will no longer be necessary with the lower tax rate.
The plan has been well received on social media, even among economists and business professionals, who call it “sensible.”
— Donald J. Trump (@realDonaldTrump) September 28, 2015
It so good, even Democrats can love it.
— Fox News (@FoxNews) September 29, 2015
Watch the press conference below: