Donald Trump presidential campaign, 2016/Taxes

Donald Trump announced his presidential run on June 16, 2015.

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This page was current as of the 2016 election.
The nation’s tax policy has been a divisive issue in recent elections and 2016 was no exception.

Much of 2016's tax policy was a carry-over from the early 2000s. George W. Bush's administration phased in temporary but significant income tax cuts and reduced taxes on investment income. Barack Obama's early attempts to end some of the Bush-era tax cuts in the late 2000s were met with strong resistance because of the economic downturn. As a result, in 2013, the Obama administration indefinitely extended nearly all of the Bush tax cuts that were set to expire. These permanent tax cuts limited Obama's tax code reform efforts; however, his administration did manage to raise taxes on the highest-earning households and enact temporary tax breaks for middle-income earners. These tax breaks were set to expire at the end of 2017, less than one year after the winner of the 2016 presidential election took office.

See what Donald Trump and the 2016 Republican Party Platform said about taxes below.

CANDIDATE SUMMARY

Trump supported cutting taxes at all income levels, with the largest benefits, in dollar and percentage terms, going to the highest-income households.

He said he wants to eliminate the federal income tax for individuals earning less than $25,000 and couples earning less than $50,000, reduce the highest individual income tax rate from 39.6 percent to 33 percent, and cut corporate taxes to no higher than 15 percent.

Trump supported significant business tax cuts.

Trump proposed a tax deduction for childcare expenses.

Trump on taxes

• Trump announced a revised tax plan on August 8, 2016. His first tax plan, announced on September 28, 2015, would have reduced the highest individual income tax rate from 39.6 percent to 25 percent. The revised plan sets the top individual income tax rate at 33 percent. The new plan reduces the number of income tax brackets from seven to three: 12 percent, 25 percent, and 33 percent. Trump had previously proposed income tax brackets set at 10 percent, 20 percent, and 25 percent. A report by the Committee for a Responsible Federal Budget showed that Trump's first tax plan would have cost $9.25 trillion over a decade. According to CNN, Trump's revised tax plan aligns with House Speaker Paul Ryan's policy agenda.

• Trump gave an economic policy speech in Detroit on August 8, 2016, where he unveiled several new proposals, including reducing the number of tax brackets from seven to three. He also proposed making childcare costs tax-deductible, placing a moratorium on new federal agency regulations, ending the death tax, renegotiating the North American Free Trade Agreement, and renewing the Keystone XL pipeline project.

• Trump announced a new tax proposal on August 8, 2016, that would allow parents to deduct the average cost of childcare expenses. “We don’t want it to be an economic disadvantage to have children,” an aide said, according to Reuters. Trump did not provide specifics on how he would calculate average childcare expenses, what expenses would be eligible, or what costs the federal government would incur under the plan. Trump said plan details are forthcoming.

• Politico reported on May 11, 2016, that Trump’s presidential campaign reached out to CNBC host Larry Kudlow and Heritage Foundation analyst Stephen Moore to consult on how to revise Trump’s tax platform and reduce the cost. According to Kudlow, the new plan he devised would increase the federal deficit by $3.8 trillion rather than $10 trillion, but Trump has not yet approved the revisions.

• In an interview with NBC’s Chuck Todd which aired on May 8, 2016,Trump discussed tax policy. He said, "The thing I'm going to do is make sure the middle class gets good tax breaks. Because they have been absolutely shunned. The other thing, I'm going to fight very hard for business. For the wealthy, I think, frankly, it's going to go up. And you know what, it really should go up. … But the middle class has to be protected. The rich is probably going to end up paying more. And business might have to pay a little bit more [than his proposal due to negotiations with Democrats]. But we're giving a massive business tax cut.”

• In an interview on January 24, 2016, Donald Trump said that he tries to minimize his personal taxes because he does not approve of how the government spends tax dollars. "I try to pay as little tax as possible, because I hate what they do with my tax money. I hate the way they spend our money, the way they give it to Iraq, the way they give it to Iran,” said Trump.

• The Tax Policy Center released its analysis Trump’s tax platform on December 22, 2015. According to the nonpartisan think tank, “His proposal would cut taxes at all income levels, although the largest benefits, in dollar and percentage terms, would go to the highest-income households. The plan would reduce federal revenues by $9.5 trillion over its first decade before accounting for added interest costs or considering macroeconomic feedback effects. The plan would improve incentives to work, save, and invest. However, unless it is accompanied by very large spending cuts, it could increase the national debt by nearly 80 percent of gross domestic product by 2036, offsetting some or all of the incentive effects of the tax cuts.”

• In a statement on November 23, 2015, Trump said it was “disgusting” that the pharmaceutical firm Pfizer would relocate its headquarters overseas as part of a merger with Allergan. "The fact that Pfizer is leaving our country with a tremendous loss of jobs is disgusting,” he said. The move is known as a tax inversion and occurs when an American-based company merges with a foreign firm and the new combined company sets up headquarters abroad for the purposes of lowering its U.S. tax bill.

• Trump unveiled his tax policy on September 28, 2015. According to The Wall Street Journal, Trump’s platform would remove the federal income tax for individuals earning less than $25,000 and couples earning less than $50,000, reduce the highest individual income tax rate from 39.6 percent to 25 percent, and cut corporate taxes to no higher than 15 percent.

• During September 2015, the Center for Tax Justice claimed Trump's tax plan would reduce tax revenues by $9 trillion over 10 years. the Tax Foundation similarly estimated his plan would cost $10 trillion over the same time period. Trump's campaign maintained that the plan was designed to be "revenue neutral."

• In an interview with Bloomberg on August 26, 2015, Trump said he would “simplify” the tax code. “I would take carried interest out, and I would let people making hundreds of millions of dollars-a-year pay some tax, because right now they are paying very little tax and I think it's outrageous. I want to lower taxes for the middle class,” Trump said.

• Appearing on CBS’ Face the Nation on August 23, 2015, Trump said hedge fund managers were “getting away with murder” and should pay higher taxes. “They're paying nothing and it's ridiculous. I want to save the middle class. The hedge fund guys didn't build this country. These are guys that shift paper around and they get lucky,” Trump said.

• In a June 2015 interview on MSNBC, Trump said he would nominate Carl Icahn, Henry Kravis or Jack Welch to the office of Secretary of the Treasury.

• In his 2011 book, Time to Get Tough, Trump outlined a five-part tax plan that defined four income tax brackets determining whether you pay 1 percent, 5 percent, 10 percent or 15 percent of your income. The plan also called for the end of the estate tax, a lower tax on capital gains and dividends, the elimination of corporate taxes and a 20 percent import tax.

• Trump called a flat tax "unfair to the poor" and "unfair to workers" in his 2000 book, The America We Deserve. Trump stated, "Only the wealthy would reap a windfall, because a flat tax would allow them to cash in interest payments and capital gains without paying personal income taxes."

• In 1999, Trump proposed a one-time net worth tax of 14.25 percent on individuals and trusts worth more than $10 million. He asserted that this tax would raised enough money to wipe out the national debt, which at the time was $5.66 trillion.
• Read what other presidential candidates said about taxes.

The 2016 Republican Party Platform on taxes

“ Fair and Simple Taxes for Growth Republicans consider the establishment of a pro-growth tax code a moral imperative. More than any other public policy, the way government raises revenue — how much, at what rates, under what circumstances, from whom, and for whom — has the greatest impact on our economy’s performance. It powerfully influences the level of economic growth and job creation, which translates into the level of opportunity for those who would otherwise be left behind. Getting our tax system right will be the most important factor in driving the entire economy back to prosperity. The current tax code is rightly the object of both anger and mockery. Its length is exceeded only by its complexity. We must start anew. That will be an enormous undertaking and, if it is to succeed, it must command the attention and approval of the American people. It cannot be engineered from the top down, but must have a common sense approach, and be simplified. Our proposal is straightforward. Wherever tax rates penalize thrift or discourage investment, they must be lowered. Wherever current provisions of the code are disincentives for economic growth, they must be changed. We will not divide the American people into winners and losers. We will eliminate as many special interest provisions and loopholes as possible and curb corporate welfare, especially where their erosion of the tax base has created pressure for higher rates. We will be mindful of the burdens on families with children and the impact on an aging population. We will seek simplicity and clarity so that every taxpayer can understand how much of their income is consumed by the federal government. We will welcome all to this enterprise — to discuss, debate, challenge, and amend — so that together we can restore economic growth for the American people and, even more important, renew their faith in the future. Our Tax Principles To ensure that past abuses will not be repeated, we assert these fundamental principles. We oppose retroactive taxation. We condemn attempts by activist judges at any level of government to seize the power of the purse from the people’s elected representatives by ordering higher taxes. We oppose tax policies that deliberately divide Americans or promote class warfare. Because of the vital role of religious organizations, charities, and fraternal benevolent societies in fostering generosity and patriotism, they should not be subject to taxation and donations to them should remain deductible. To guard against hypertaxation of the American people in any restructuring of the federal tax system, any value added tax or national sales tax must be tied to the simultaneous repeal of the Sixteenth Amendment, which established the federal income tax. ” —2016 Republican Party Platform

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See also

• Donald Trump
• Donald Trump presidential campaign, 2016