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Trump's Simplified Tax Code will Help America Expand its Economy
12/06/2016 Finance Benjamin R
keywords: Economy

Trump's Simplified Tax Code will Help America Expand its Economy


No matter what you say about the Republican nominee, Donald Trump recently released information on his economic plan and things are looking fabulous from a growth perspective. Even though some of his policy proposals are outside what some Americans support, his job creating, pro-growth tax policies are encouraging to most Americans who believe America is operating at a sub-par level.


They create a vital and clear distinction between his goal of a stronger country as compared to Hillary Clinton who was going to continue the status quo which is be totally oblivious to the hundreds of thousands of jobs overseas and billions of dollars overseas as well. As per Trump, the common feature among all of Hillary Clinton's ideas is that they punish businesses for operating in America. Each policy has tilted the field towards outsiders.


The Promise


Trump has promised the biggest revolution in tax cuts since Reagan. He said that he would lower corporate taxes to 15 percent and reduce the individual tax brackets to 3 percent. He also proposed a 10 percent tax for all businesses who earn profits outside of US as long as they come back to the US.


His family-friendly tax breaks will let parents deduct childcare completely; this move plays well with a number of misguided voters who believe this is going to benefit the wealthy since lower income families choose the standard deduction instead of itemizing federal tax returns.


Regulations


Trump has targeted the costly and destructive regulatory impositions over the last 8 years. In 2015, Obama's administration unilaterally issued 2,000+ regulations which all had hidden taxes embedded in them. This was a massive lead weight on America's economy. It's now time to get rid of this anchor which is keeping jobs overseas and jobs from not being created in the first place. Trump said that from the moment he takes office, he will give a temporary moratorium on the new regulations for all businesses.


Loopholes


Closing corporate and special interest loopholes which only helped the wealthy is another critical step he will take in order to create a just and fair tax system. Trump wisely proposed eliminating carried interest deductions which let high earning money managers enable earnings to be capital gains instead of regular income. This move could help generate $17 billion over a 10 year period.


On the whole, even though it is still imperfect and lacking some salient details, the most current promises related to tax reform by Trump are fantastic. They are a strong effort by him to join fiscal conservatives while moving the country out of economic lethargy. Trump’s system does not favor the wealthy or special interests as well – it favors hard working Americans.


Source: Benjamin R
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