Details about presidential candidate Donald J. Trump’s tax plan can be found on his website –www.donaldjtrump.com. According to his website presidential candidate Donald J. Trump will change the existing tax laws to make America great again by collapsing the current seven income tax brackets into three brackets, lowering the business tax rate from 35 percent to 15 percent for both big and small business and eliminating the estate or death tax amongst other things.
What Trump’s tax plan means for the economy
Trump’s plans aims to reduce the nation’s tax burden and somehow boost economic growth at the same time as if government taxes don’t play an important role in building the society we see. According to Jared Bernstein, a former chief economist to Vice President Biden, Trump’s tax plan involves tax cuts heavily tilted towards the wealthy and relies on the theory of trickle-down economics which presumes “a tax cut that raises the after-tax wage or lowers the after-tax cost of capital could boost the supply of these critical variables, increase growth, and spin off some revenues.”
“My plan will embrace the truth that people flourish under a minimum government burden and will tap into the incredible, unrealized potential of our workers and their dreams,” Trump said in a recent speech to the Economic Club of New York.
Jared Bernstein states, “Based on its -trickle-down economics- historical record, listeners should wholly discount linking high-end tax cuts to faster growth. What they will do is exacerbate after-tax inequality and raise the budget deficit.”
