Business
Trump Lays Out 2nd Term Tax Cuts, Attacks Biden’s Tax Plan
During a speech yesterday, President Trump laid waste to Joe Biden’s tax plan while also revealing new tax credits for companies that bring back jobs from China and other countries.
“This is the only election where somebody said ‘we’re going to raise your taxes,’ they’re going to raise your taxes – quadruple your taxes,” Trump said.
Biden has proposed a host of new taxes, primarily aimed at wealthy individuals and corporations. He did so at a time when the economy is struggling to recover from the coronavirus pandemic.
Shockingly, when asked why he would burden companies with more taxes while the country is struggling, Biden responded that it was “smart.”
In an interview on Sunday with ABC's David Muir, Biden said “I will raise taxes for anybody making over $400,000. Let me tell you why I'm going to do it. It’s about time they start paying a fair share of the economic responsibility we have. The very wealthy should pay a fair share — corporations should pay a fair share.”
Biden then referred to businesses that make “close to a trillion dollars and pay no tax at all.”
Muir asked if it was a good idea to burden businesses with additional taxes while the economy is still trying to recover from the coronavirus crisis.
“It’s smart to tax businesses that in fact are making excessive amounts of money and paying no taxes,” Biden said.
Trump's Plan
Instead of raising taxes, President Trump, an actual businessman, understands that lowering taxes will spur the economy to great heights.
President Trump wants to lower the capital gains tax rate, perhaps as low as 15%. With this, Treasury Secretary Steven Mnuchin told FOX Business he believes the change should be approved by Congress.
In comparison, Joe Biden wants to tax capital gains at the same rates as ordinary income. This means the rate could balloon to as much as 39.6% for the highest earners.
Trump is likely to reveal a second set of tax cuts prior to the election, which will likely include a “substantial” tax cut for middle-class Americans.
During an interview with CNBC, White House National Economic Director Larry Kudlow said a 15% tax rate for the middle class sounded like “a pretty good idea.”
Tens of millions of Americans are paying 22 percent or 24 percent. This means a cut to 15% would save them a lot of money.
Additionally, the Trump administration is looking into making some of the individual and corporate measures from the Tax Cuts and Jobs Act that are set to sunset in 2025 permanent.
A Biden presidency, as President Trump continues to point out, would bring about the “biggest tax increase in history.”
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