October 1, 2015
Donald Trump's tax plan would be the biggest reduction in tax rates since the 1986 Tax Reform Act under Ronald Reagan, and like the Gipper's reforms, this plan would cover the costs by closing loopholes. Bravo.
It's not as strong as the Rand Paul 14.5 percent flat tax, but it's high octane for the economy.
Mr. Trump would cut tax rates across the board. The highest income tax rate would shrink from about 40 percent under current law to 25 percent. The capital gains tax would be reduced to 20 percent from 23.8 percent.
The estate tax, now at 40 percent, would fall to zero. This plan also eliminates the hated alternative minimum tax and the marriage penalty tax imposed on working married couples.
Best of all is his call for a 15 percent corporate tax - down from the world's highest rate of 35 percent. The U.S. would go from the highest to nearly the lowest tax on business. This will bring companies back to America. That's smart and pro-growth.
Mr. Trump's rhetoric on growth was refreshing too, coming from a candidate who over the last few months has sounded more populist and even progressive than conservative when it comes to taxes and jobs. He says the new businesses will pay more taxes, and he's right. Foreign companies don't pay taxes here.
I don't like taking 70 million Americans off the tax rolls. That's a bad idea that makes government free. We don't want the top 30 percent paying all the taxes.
But it's a job-creating plan. Welcome to the supply side, Mr. Trump.