Donald Trump's Tax plan

The Trump plan for taxes is good.  It is not a flat tax, but instead like Rubio and Kasich works with the existing code, but is adjusted to accommodate personal and business income growth.  What it would do is create four categories of people with respect to how much they will be taxed.  For individuals making $25,000 and under, they will not pay any taxes, neither will Married filers making $50,000 and under, and heads of the household making $37,000 and under. Those taxed at a 10% rate will be individuals making $25,001 to $50,000, married couples making $50,001 to $100,000 and heads of households making $37,001 to $75,000.  Both these initial two groupings will not be taxed by the capital gains taxes (money earned through things like investments as opposed to work).  Individuals making $50,001 to $150,000, married couples making $100,001 to $300,000 and heads of households making $75,001 to $225,000 will be taxed at a 20% tax rate and a capital gains tax rate of 15%.  All money beyond these amounts listed will be taxed at a 25% tax rate and a capital gains tax rate of 20%.  Interestingly, Trumps plan has three groups who are taxable and does not combine capital gains taxes with regular income like other plans such as Cruz's and Rubio's.  Of note, Trumps plan makes deductions progressive like the income tax itself.  As such those in the 10% tax category will keep all or most of their deductions, the people in the 20% category will keep a little over half their deductions and those in the 25% category will keep some of their deductions according to his website.  Charitable giving and Mortgage deductions will remain the same as they are now under Trumps plan.  Also, Trumps plan also makes health care premiums completely tax deductible.  Trump aims to eliminate as many special interest deductions as possible, and phase out others that would not work with his tax plan.  For businesses, as Trump recognizes that startups and other small and growing businesses pay their taxes via income taxes as opposed to business taxes.  So Trump will create a 15% business tax which based on his wording will allow these small business owners to choose which tax to pay, while big businesses will pay the 15% rate only.  With all the deductions reduced for the rich, and the new tax code, apparently no small businesses or middle class and lower people will be harmed by the new plan.  As such, Trump is touting that the rich will pay more.  For businesses who keep money abroad and sell outside our borders, the tax deferral on income earned abroad will disappear but the foreign tax credit will remain.  Trump also has a onetime repatriation fee of 10% for money held abroad by corporations, which Trump hopes to encourage businesses to bring home with his new tax code (according to Trump's site, $2.5 trillion is held overseas). Trump will also phase in a tax cap on the deductibility of interest expenses.  Lastly, the death tax will be eliminated.

Final Thought: Donald Trump's plan is basically Kasich's and Rubio's plan, but goes further than Kasich and has better rates than Rubio's.  It is not the flat tax that libertarians and conservatives hope for, but it is an improvement.  I think Trump helps the poor and attacks the rich all in the same tax code to show off his progressive credentials and cares about people's perceptions of fairness which he may possibly share based on what I have read in his tax and health plans.   I personally do not like the three separate rates, but his business tax rate on its own is the best compared to Cruz's 16% rate (though it taxes total income and not exclusively profit based on how it is worded).  But Trumps keeping of various tax loopholes and deductions outside of mortgage, charity and his newly added health care premium deduction could hurt him as people may say he did not go far enough, or rich people may still try to leave the country as they could still end up paying more.  I do not think he will satisfy everyone, but hey, he is still an option.