posted on May, 10 2016 @ 04:03 PM
originally posted by: matafuchs
a reply to: Aazadan
Have you looked at Trumps plan?
Currently you have 7 tiers. His plan is 5 tiers. Upper Middle class via trump is 25% over 150k single, 300k married. At today's tax rate you would be
paying 28 to 40%. He is not doubling anything.
Where are you seeing this?
Trump is bringing rates paid much closer to effective rates. He's simplifying the tax code removing deductions. You do not pay 40% at 300k today,
you're in a 33% bracket but you do not pay 33% because tax systems only tax dollars in that bracket at that rate meaning your effective rate is always
quite a bit lower than your bracket.
The real increases however come from his increase to the capital gains rate, after about 300k or so, most of your compensation starts coming from
capital gains and those are going up by 1/3. This increases the effective rates on the wealthy from the ~13-15% they pay now to closer to 18-19%.
The number of tiers is irrelevant except for the fact that Trump simplified the numbers to lots of 5's and 10's for easy rounding, very common core of
him. His plan can be summed up as
0% up to 25,000
10% on the next 25,000
20% on the next 100,000
25% on everything else.
I actually like that he wants to make the tax code more concise, but it's not a lower tax plan. The capital gains portion is very important even
though it only takes up 1 field of one table in his plan.
Edit: Doubles is hyperbole after working out the numbers, it's an increase but not quite double. It's closer to about a 50% increase on those whose
taxes mean anything.
edit on 10-5-2016 by Aazadan because: (no reason given)