I spoke with Win Damon last week about Mr. Trump’s income tax plan. His plan would cut taxes and lead to higher incomes for taxpayers at all levels of income, including the wealthy and the super wealthy. In many ways it is a classic GOP tax plan where the money flows from the rich in the form of huge tax cuts and trickles down to the middle and lower incomes though jobs and further economic gain.
Single filers making less than $25,000 and married filers making less than $50,000 will pay no taxes on the plan. Currently around 45% Americans do not pay any tax and the number would increase under Trump’s proposal.
One point of interest is that Mr. trump wants to go after one particular group of super wealthy folks and make them pay their fair share: The Hedge Fund Guys. He’s talking about them everywhere. They pay income tax at the long term capital gains rate of 23.8% instead of the ordinary income tax rate of 43.4% on monies that they earn. The key here is that they are not risking their own money, and should be taxed at the ordinary income tax rate like all other workers who are not risking there own money!
In the end, Trump’s plan cuts rates at the top and the very top even more than Jeb Bush, and this will surely lead to more arguments about trickle down and inequality in America.
With more than 25 years of experience as a credentialed tax professional, Stu Steinberg brings a broad depth of knowledge to his work. Stu founded Erock Tax to help provide tax strategies to individuals, families and small businesses. He also uses his CPA expertise in many areas of personal finance. Stu is passionate about empowering his clients through education about their tax health. He is highly energetic and brings a sense of optimism, creative problem-solving and a deep level of commitment to every Erock client.
Click below to hear the chat with Win Damon on WNBP.com and FM radio 106.1 WNBP in Newburyport, MA.