Trump tax plan riles the right

September 28, 2015

Donald Trump’s new tax plan may not upset rich Americans as much as expected, but it quickly drew the ire of conservative groups and deficit hawks.

Trump, the front-runner in the Republican presidential race, on Monday  unveiled his plans to lower income tax rates, exempt more low-income people from paying, and give businesses incentives to bring profits earned overseas back to the United States.

U.S. Republican presidential candidate Donald Trump greets supporters as he takes the stage at a campaign town hall meeting in Rochester, New Hampshire September 17, 2015. REUTERS/Brian Snyder

Right-leaning groups and conservative policy experts quickly pushed back.

Ken Kies, a Washington lobbyist and managing director of the Federal Policy Group, said Trump’s plan to require U.S. multinational corporations to pay U.S. taxes on foreign income held overseas would make American businesses less competitive.

Currently, those companies can defer U.S. taxes until they bring the profits back into the country.

“In terms of business changes, there’s some, like, breathtakingly bad stuff in here,” Kies said.

Exempting more Americans from income taxes, so that fewer Americans are on the hook to pay, also won’t go over well in some quarters, said Douglas Holtz-Eakin, who leads the right-leaning think tank American Action Forum.

“There are many conservatives who are not going to like that,” he said.

Trump’s claim that his plan would not reduce tax revenues met with skepticism. The real estate mogul said he would eliminate some tax deductions for wealthy Americans to make up the money lost by lowering rates.

“Sadly, we may have to add this to a growing list of tax plans that ignore the need to reduce our record-high debt,” said Maya MacGuineas of the debt-reduction group Campaign to Fix the Debt.

Still, some groups found scope for praise in Trump’s proposal.

“Trump has said he opposes net tax hikes and has made clear that the real problem is spending,” said Grover Norquist, president of Americans for Tax Reform and a staunch opponent of tax increases. “This plan is a reform, not a tax hike.”

 

2 comments

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this loon should run as democrat.

Posted by yobro_yobro88 | Report as abusive

I’m skeptical of the outcome of bringing in more revenue by reducing taxes, although on paper, the idea of eliminating exemptions and simplifying the code has its own appeal. Much better to first remove the exemptions and the corrupt system that favors the wealthy forming offshore tax havens in perpetuity, then evaluate whether the rates need to be reduced. Still, I give Trump credit for his focus on the financial industry’s unfair tax advantage.

Posted by pyradius | Report as abusive