Trump scales back tax cuts in new economic plan
Post# of 51947
Posted On: 09/16/2016 9:10:03 AM
Trump scales back tax cuts in new economic plan
Republican presidential nominee Donald Trump unveiled a plan on Thursday for $4.4 trillion in tax cuts, offering less generous tax breaks than his original $10 trillion plan but proposing to cut the current top rate for the wealthiest taxpayers.
Trump's proposal, which he detailed in a speech in New York, would reduce the top individual rate to 33 percent from the current 39.6 percent. It would raise the standard deduction and cap itemized deductions, which he said would reduce tax loopholes. Trump said his plan would not add to the federal deficit.
But his estimate of the $4.4 trillion cost of the plan uses a mechanism known as "dynamic scoring," which assumes that tax cuts will lead to faster growth, which in turn will allow at least some of the tax breaks to pay for themselves.
Trump also offered a "Penny Plan" for cutting federal spending. He said he would shrink government programs outside of defense by 1 percent each year. But entitlement programs such as Social Security and Medicare would be shielded from any cuts.
The original tax plan laid out by the New York businessman last September was criticized by Democrats and Republicans alike for its costly price tag. DemocratHillary Clinton, who will face Trump in the Nov. 8 election, denounced it as catering to the very wealthy and ignoring the working class.
Republican presidential nominee Donald Trump unveiled a plan on Thursday for $4.4 trillion in tax cuts, offering less generous tax breaks than his original $10 trillion plan but proposing to cut the current top rate for the wealthiest taxpayers.
Trump's proposal, which he detailed in a speech in New York, would reduce the top individual rate to 33 percent from the current 39.6 percent. It would raise the standard deduction and cap itemized deductions, which he said would reduce tax loopholes. Trump said his plan would not add to the federal deficit.
But his estimate of the $4.4 trillion cost of the plan uses a mechanism known as "dynamic scoring," which assumes that tax cuts will lead to faster growth, which in turn will allow at least some of the tax breaks to pay for themselves.
Trump also offered a "Penny Plan" for cutting federal spending. He said he would shrink government programs outside of defense by 1 percent each year. But entitlement programs such as Social Security and Medicare would be shielded from any cuts.
The original tax plan laid out by the New York businessman last September was criticized by Democrats and Republicans alike for its costly price tag. DemocratHillary Clinton, who will face Trump in the Nov. 8 election, denounced it as catering to the very wealthy and ignoring the working class.
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