The House of Republicans’ new tax overhaul plan that was recently published is more in line with the failed GOP nominees’ plans than the presumptive candidate’s.
Among the highlights of the published proposals are a few highlights:
- Most people of America will be able to file their taxes on something as small as a postcard- Ted Cruz.
- Businesses will be able to write off most capital investments by the state doing away with interest payments- Jeb Bush
- No more taxation on a company’s foreign profits- Marco Rubio
The above are but a few of the pointers that the publication featured. In fact, there were a number of things that Paul Ryan, the Speaker of the House took from all the other candidates who eventually lost out to Trump. The theme though was clear and it was to move taxation from an income based one to a consumption based one. A spokesperson for the Tax Policy Center said that the GOP is taking a whole new approach to taxation, one that has not necessarily been taken before.
Differences and similarities
It goes without saying though that for the most part, Trump’s tax plans are vastly different; in fact, they are different on every pane except for one thing. Both proposals see massive tax cuts for the wealthiest, the cream of society, so to say. The tax cuts reserved are seen at the very top, capital gains and high income households will be seeing a great deal of write offs, should they be implemented.
Apart from the capital gains that will be gone, there are a few more taxes that will also eventually be removed. Both Trump and the GOP plan on doing away with the estate tax, a tax that only directly affects 5,300 families in all of the USA. The second tax that will be removed entirely will be the 3.8% investment income surtax that also only applies to high earners. The money from this surtax is now being used to directly fund healthcare for low income Americans. The third major tax cut will be the removal of the alternate minimum tax. A tax in place that ensures high earners pay a set amount of minimum tax, it was originally placed by the government to make sure that those using loopholes to pay no tax would pay at least a minimum amount.