At last, it’s here!
President Trump has finally begun talking about one of his key stimulus plans that will benefit the whole country economically — tax reform. Greatly anticipated over the course of this year, tax reform is a cornerstone of Trump’s plan to “Make America Great Again” (MAGA) by reducing taxes for most Americans and supercharging the economy. Outlining some of the reforms in this clip is Dr. Arthur Laffer, an economist from the Reagan administration.
In brief, Trump’s tax plan will reduce the number of government tax brackets from seven to three, simplifying the classification system for all Americans as far as taxes. The onerous estate tax, which prevented wealth being passed on within families, will be eliminated, and the standard deduction that most middle-class taxpayers take would be doubled, allowing middle-income earners to reduce their taxes by more than $1000 on average.
Businesses especially will benefit. Currently, the U.S. has some of the highest corporate tax rates in the civilized world. Under Trump’s plan, these will drop from 35 percent down to 15 percent. This drastic decrease will spur many multinational corporations to repatriate profits that they’ve been sheltering overseas for years because they didn’t want to pay such high business tax rates.
Instead of paying taxes in America, companies were hiring hordes of tax lawyers to find as many loopholes and gimmicks as they could use to hide their firms’ income from Uncle Sam. But if corporate tax rates are reduced to below 20 percent, these companies will find it cheaper to simply pay their taxes in America, making up much revenue that’s currently lost under the IRS’ present system.
It’s anticipated that all of these plans will drive economic growth rates above three percent, far in excess of what they were during the Obama administration.
Watch, as Laffer dissects Trump’s tax plan for America.
