Donald Trump unveiled a tax plan on Monday that would eliminate income taxes for millions of Americans.
Speaking at at Trump Towers in New York, the businessman said his plan would provide "major tax relief for middle-income and for most other Americans," but without giving specifics on how that tax relief would work.
"There will be a major tax reduction," he said. "It’ll simplify the tax code, it will grow the American economy in a level that it hasn’t seen in decades."
Trump called for the poorest Americans to pay no federal taxes at all. According to the plan he released Monday, single people earning less than $25,000 and married couples filing jointly and earning less than $50,000 would pay no federal income tax.
Instead, they would send a one-page form to the IRS that simply says: "I win."
Low-income people would file a one-page form with the IRS that says "I win" under Donald Trump's tax plan. pic.twitter.com/N6jJHktctW— Byron Tau (@ByronTau) September 28, 2015
Trump’s plan would lower taxes for the highest income earners, as well as businesses. It would also lower the corporate tax rate from 35% to 15%, as well as the highest income tax rate from 39.6% to 25%.
Both the speech and the plan, though, were scant on details as to how he would pay for his proposals. They would, in part, be paid for by eliminating deductions and loopholes. Trump has also proposed allowing businesses to bring money held in overseas accounts back to the United States if they pay a one-time 10% tax.
Trump’s plan seemed to win the backing of Americans for Tax Reform, which has called on all candidates to sign a pledge not to raise taxes.
Donald Trump’s tax reform plan--released Monday am -- is perfectly consistent with the Taxpayer protection Pledge. (the problem is spending)— Grover Norquist (@GroverNorquist) September 28, 2015
Grover Norquist, the conservative group’s president, said in a statement that Trump’s plan is “certainly consistent with the Taxpayer Protection pledge.”
"Trump has said he opposes net tax hikes and has made clear that the real problem is spending. This plan is a reform, not a tax hike," Norquist said.
Trump’s tax plan release comes as he is still leading in the polls for the Republican nomination. However, a Wall Street Journal/NBC News poll out Sunday found retired neurosurgeon Ben Carson virtually tied with him.