According to a report on Yahoo News, Republican Presidential frontrunner Donald Trump has revealed a proposed tax plan for the nation that would effectively eliminate income taxes for millions of Americans.
Here’s the breakdown:
Trump’s plan would eliminate the income tax for single earners who make less than $30,000 a year and for married couples who make less than $50,000.
Rather than filling out a lengthy tax return each year “[Those individuals] would receive a one-page sheet to send the IRS saying ‘I win’ “ Trump said in his statement.
In addition to removing income taxes for the 99 percent, Trump’s plan would also reduce the taxable percentage of the highest wage bracket from 39.6 percent to 25 percent.
To top it all off Trump also wants to cap taxes for all US corporations — both large and small —at 15 percent.
These proposals, while attractive to both middle and upper class Americans, would represent a savage hit to the federal government’s bottom line; and I for one enjoy having fireman that respond when I call and bridges that don’t collapse.
In order to recoup the losses that are integral to his plan Trump announced that he is also committed to eliminating the “Carried Interest Loopholes” that massive corporations and hedge funds take advantage.
Trump also plans to offer big companies the chance to move their hefty bank accounts from overseas institutions (where they are safe from American taxation), and to bring those dollars back into the US economy by paying a one-time tax of 10 percent.
Trump believes that his plan will not add to the national debt, and will in fact cause the US economy to grow at a rate of 3-6 percent annually.
Most experts, however, do not agree.
The prospect of a drastically reduced income tax, reduced business taxes, and billions of dollars in overseas investment once again resting in US bank vaults does sound delightful.
However, it does seem that the term “campaign promise” could have been coined with this moment specifically in mind.
This plan is the definition of a campaign promise. It lands great on the ears of voters, but if it would be allowed to pass to their brains than they would very quickly realize the Herculean nature of the task.
For Trump to actually enforce this plan he would have to overcome immense, some would say insurmountable, obstacles. Not the least of which being The Sixteenth Amendment to the United States Constitution.
If repealing an amendment weren’t difficult enough Trump would also have to convince the same Congress that nearly shut down last week over the issue of ONE government entity's funding to alter the very fabric of the US federal budget.
And that’s just for part 1 of Trump’s plan.
In order to enact the rest of his vision Trump would then have to broker individual deals with the nation’s largest corporations in order to get them to pull in their foreign investments, AND convince the Democrats in Congress to go along with a 15 percent business tax and a 25 percent tax for the super-rich (har har).
Look, nothing is impossible in a world where you can buy peanut butter and jelly in the same jar.
But by making this announcement Trump has revealed the crippling political inexperience that he brings as a candidate in order to make a flashy promise on the campaign trail.
It might be a decision he lives to regret.