Here are some of the main points from Trump’s tax plan:
- Eliminate income tax entirely for some Americans. Trump proposes getting rid of taxes for single workers who earn less than $25,000 per year and for married couples who earn less than $50,000. Trump’s plan actually says these people will get a one-page form “to send the IRS saying, ‘I win.'”
- Eliminate some tax brackets. Trump proposes scaling back to four income tax brackets: 0%, 10%, 20%, and 25%. The plan, featuring a decrease from seven brackets, significantly lowers the highest income-tax rate from 39% for the highest earners. Trump’s Republican presidential rival Jeb Bush has a similar plan that will create only three brackets.
- Lower business income-tax rate to 15% or lower. “No business of any size, from a Fortune 500 to a mom and pop shop to a freelancer living job to job, will pay more than 15% of their business income in taxes,” Trump’s plan says. Trump proposes balancing these cuts by closing some corporate tax loopholes for special interests, though he does not specify which interests these are.
- Eliminate estate tax. “The death tax punishes families for achieving the American dream,” Trump’s plan says. “Therefore, the Trump plan eliminates the death tax.”
- Reducing loopholes and deductions. Trump says that in exchange for lowering income taxes for individuals making over $150,000 and married couples making a combined $300,000, he will eliminate many tax loopholes and deductions for top earners. The real-estate mogul also suggests that the carried-interest loophole will be eliminated entirely.
- Corporate repatriation tax break. Trump proposes giving a tax break to companies that repatriate corporate cash from overseas. “Some companies have been leaving cash overseas as a tax maneuver,” the plan says. “Under this plan, they can bring their cash home and put it to work in America while benefiting from the newly-lowered corporate tax rate that is globally competitive and no longer requires parking cash overseas.”