Donald Trump announced a tax plan for his 2016 presidential campaign at a press conference in New York City on Tuesday.
The plan includes four goals: tax relief for the middle class, tax code simplification, economic growth and reduction of the nation’s debt and deficit. “Essentially, the plan is a major tax reduction for almost all citizens and corporations, in particular, those in the middle and lower income classes,” the Trump campaign said in a statement published by political news website The Hill. To simplify the tax code, the existing seven income tax brackets would be reduced to four brackets under Trump’s plan: 0, 10, 20 and 25 percent. The highest income tax rate is currently 39.6 percent for those making over $413,201.
In the position, the Trump campaign said over 73 million households will be taken off the federal income tax roll. Single filers with incomes between $0 and $25,000 and married filers with incomes between $0 and $50,000 will not pay any income tax.
Businesses will not be taxed more than 15 percent of their income regardless of their size or worth. Businesses would no longer be able to defer taxes on income earned abroad.
“A major beneficiary will be corporations and job producers, with an emphasis on businesses in the United States and bringing money back into the United States,” the campaign statement reads.