Presidential frontrunner Donald Trump released details of his tax plan today.
The plan, posted on Trump’s “Make America Great Again” website, is billed as a way to “let people keep more money in their pockets and increase after-tax wages.”
Many Americans, however, will realize a significant gain. The plan is designed to primarily benefit the poor, the lower middle class and corporations.
“If you are single and earn less than $25,000, or married and jointly earn less than $50,000, you will not owe any income tax,” the plan states.
Trump claims the plan “removes nearly 75 million households – over 50% – from the income tax rolls” and will simplify income taxes for all Americans.
For individuals earning between $50,000 and $150,00 the tax rate will be 20%, a reduction of approximately 5%, although this varies to a certain degree under the current arcane tax structure (there are variances for single filers, married filing jointly, married and filing separately, etc.). Additionally, some deductions will be eliminated, possibly raising the tax burden on this bracket.
Married filers in the $50,001 to $100,000 category will be compelled to surrender 10% of their earned income to the government.
Individual earners making $150,000 up will be taxed at 25%, a serious reduction from the current 40%. Married earners in this bracket will pay 20%.
In short, Americans in the upper end of the middle class will continue to pay high taxes on earned income. Of course, what constitutes high taxation is subjective and one predicated on political ideology.
In September, prior to the release of Trump’s plan, Republican presidential candidate Rand Paul said his plan would scrap the tax code entirely.
“We have 14.5 percent for everybody. My tax plan would cut taxes. His, I think, is going to keep taxes level,” Paul told CNN.
Libertarians and many constitutionalists argue there is no such thing as a fair taxation scheme and plans offered by politicians are merely efforts to appear populist and are designed to sway voters.
“The libertarian view of taxes is simply that taxes should not exist in the first place. There should be no tax code because taxation is theft and violates the non-aggression principle,” writes Laurence M. Vance.
Donald Trump, most Republicans and all Democrats are not opposed to tax confiscation on principle. High taxation is required to maintain the welfare-warfare state and continue corporate welfare schemes and bankster bailouts.
“The left-right debate in America over income-tax policy assumes the continued existence of the welfare-warfare state way of life, along with the continued existence of the income tax that funds this way of life,” writes Jacob Hornberger, the president of the Future of Freedom Foundation.
Trump’s plan is part of the class warfare and left-versus-right scheme that drives American politics. Low income voters, paying no incomes taxes, and middle class voters who are promised a reduction may vote for Trump.
Hardcore socialists and so-called progressive Democrats will undoubtedly continue to argue for higher taxation, especially on producers.
The elite and mega-rich, of course, will continue to pay very low or no taxes at all. They sock trillions away in offshore tax havens and private foundations.