Posted: 2:58 pm Monday, August 8th, 2016
By Jamie Dupree
As Donald Trump unveiled a new economic plan before the Detroit Economic Club, he trimmed back some of the tax cuts he had proposed for more wealthy Americans, endorsing the basics of a tax reform plan pushed by House Speaker Paul Ryan and other Republicans in the Congress.
“These reforms will offer the biggest tax revolution since the Reagan Tax Reform, which unleashed years of continued economic growth and job creation,” Trump said in a speech that was interrupted at times by protesters.
One of the biggest changes in Trump’s tax plan was to rejigger the top income tax rate; Trump had originally proposed a top rate of 25 percent, but his new plan has that at 33 percent, which is where GOP lawmakers in Congress have been at.
Trump went so far as to put a link in the footnotes of his speech, which goes directly to Speaker Ryan’s “Better Way for America.”
“My plan will reduce the current number of brackets from 7 to 3,” Trump said in his speech, as he would have tax brackets of 12 percent, 25 percent and 33 percent.
That top income tax rate is still less than the 39.6 percent under current law.
“This will lead to millions of new and really good paying jobs,” Trump said.
Trump did have one interesting line that some Democrats actually might embrace – as he said top earners should “pay their fair share.”
“The rich will pay their fair share, but no one will pay so much that it destroys jobs, or undermines our ability to compete,” Trump said in his speech.
Trump also used his speech to not only set out his own plans, but also to knock Hillary Clinton’s job growth ideas.
“All Hillary Clinton has to offer is more of the same – more taxes, more regulations, more bureaucrats,” said Trump.
Trump at one point accused Hillary Clinton of proposing a tax increase on the middle class – though her platform calls for middle class tax cuts.
Trump also again took up the banner of one tax change that Democrats have pushed for in recent years, eliminating the ‘carried interest’ loophole that allows hedge fund managers to pay a smaller tax rate.
That plan has been ignored by Republicans in the Congress, who have long viewed any tax increase as one they should oppose.
Trump’s corporate tax rate would be 15 percent – that’s a rate he would also extend to all businesses.
“Under my plan, no American company will pay more than 15% of their
business income in taxes,” Trump said. “Small businesses will benefit the most from this plan.”
The Trump speech was well received by conservatives, who feel the GOP standard bearer should be talking about issues every day, and contrasts with Hillary Clinton, not picking fights with other Republicans and/or getting off message.
“Donald Trump Should Continue to Talk About Tax Reform, Regulatory Reform,” read a release from the group Freedom Works.
One item in Trump’s plan that did not have much detail was on allowing taxpayers to deduct more of their child-care costs; experts immediately said it could be very expensive, and that most of the benefits would seemingly go to those in higher income tax brackets.
About the Author
Jamie Dupree is the Radio News Director of the Washington Bureau of the Cox Media Group and writes the Washington Insider blog. A native of Washington, D.C., Jamie has covered Congress and politics in the nation’s capital since the Reagan Administration, and has been reporting for Cox since 1989.