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The Five Worst Features Of Trump’s Newest Tax Plan

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Donald Trump has twice revised his original tax plan from 2015 in order to make it appear less fiscally irresponsible and less slanted towards the rich and corporations. But his latest revision would still explode the federal deficit in order to give huge tax cuts to big corporations and wealthy households like his own. Trump’s plan would:

  1. Give multinational corporations with profits stashed offshore a tax cut of up to $550 billion. Big American corporations hold $2.4 trillion in earnings overseas on which they owe up to $700 billion in U.S. taxes. Trump would cut the tax rate on those offshored profits from 35% to just 10%, raising only about $150 billion. This would hand tax-dodging multinational corporations an undeserved tax break of more than half a trillion dollars.
  1. Slash the corporate tax rate by nearly 60%. Corporations are already dodging their fair share of taxes at a time of record profits. Only one in nine dollars of federal revenue now comes from corporate taxes, compared to one in three dollars 65 years ago. Rather than fix the problem of rampant corporate tax dodging, Trump’s plan would make it worse by cutting the corporate tax rate from 35% to just 15%. This would lose $2.4 trillion over the next decade.
  1. Reduce individual income tax rates on the wealthy. Trump adopts a House GOP proposal to cut the top tax rate to 33% (from about 40%), as part of a general lowering and consolidation of tax brackets. Even the conservative Tax Foundation estimates these overall rate reductions will lose $1.4 trillion over 10 years. The richest 1% will get a tax break of $88,000 a year on average. But taxes will be increased on nearly 8 million mostly low-and middle-income families with children, including more than half of single parents. If Trump is as wealthy as he says he is, he could benefit handsomely from this big tax cut.
  1. Likely cuts taxes on hedge funds and other wealthy partnerships by $1 trillion—personally benefitting Trump. Many Wall Street firms, law practices and other big-money outfits incorporate as partnerships and other entities that allow them to pay their business taxes at individual rates. The Trump campaign has offered contradictory information on how he would tax these so-called “pass-through” entities, sometimes indicating that he would continue to tax their income at individual rates, other times that he would cut their rate to just 15%. If he ultimately pursues the latter plan, these wealthy partnerships would avoid $1 trillion in taxes over 10 years. Trump is the sole or principal owner of 500 pass-through entities. He would personally benefit from a massive tax giveaway that’s been appropriately dubbed the “Trump Loophole.”
  1. Eliminate the estate tax to boost the inheritances of millionaires and billionaires—which could give his heirs a $4 billion tax break. Trump would eliminate the federal estate tax, which is only paid by very wealthy families. Just one in 500 estates is affected today, those worth at least $5.5 million. The estate tax is a small curb on the accumulation of dynastic wealth and a key tool in reducing economic inequality. Eliminating the estate tax would lose $270 billion over the next decade (though Trump’s new plan to tax capital gains at death would reduce that loss). Assuming Trump is worth the $10 billion he claims, his heirs could gain $4 billion if the estate tax is repealed.

438,000 Sign Petition Demanding Trump Release His Taxes

WASHINGTON, D.C.–Before Donald Trump’s speech at his new Washington, D.C. hotel today, Americans for Tax Fairness Action Fund (ATFAF) delivered a petition to Trump signed by 438,076 people demanding that he release his federal tax returns. The petition effort was led by ATFAF, CREDO Action, Daily Kos, and MoveOn.org.

Federal tax returns have been publicly released by every major presidential nominee for the last four decades.

The most recent Quinnipiac poll (Q. 48) showed three-quarters (74%) of likely voters said “Donald Trump should publicly release his tax returns” – including Republicans by a two-to-one margin (62% to 31%).

People across the United States signed petitions calling on Trump to release his tax returns. They want and deserve to know how many years Trump did not pay any federal income taxes. (News reports reveal that Trump has not paid federal income taxes in five years since 1978.) They also want to know if and when he does pay federal income taxes whether he’s paying a lower tax rate than middle-class families, what tax loopholes he is taking advantage of, how much he has actually donated to charity to benefit those in need, and how he will personally benefit from his constantly-evolving tax plan, which favors millionaires and billionaires.

“What is Donald Trump hiding in his tax returns?  Why is he so afraid to show them to the American people?” asked Americans for Tax Fairness Action Fund Executive Director Frank Clemente.  “Of all the reasons voters need to know what’s in Trump’s tax returns, the most important might be to learn where he would have conflicts of interest between his business holdings and his responsibilities as president.  How much would his tax policies benefit him and his family? The American people deserve to know.”

In May, Clemente wrote an open letter to Donald Trump raising a number of questions about what is in Trump’s returns and asking him to release them.

The three sets of petitions totaling 438,076 can be viewed at:

ATFAF coalition: https://www.signherenow.org/petition/trump-release-returns/demo/

CREDO Action: http://act.credoaction.com/sign/Trump_Taxes

MoveOn.org: http://pac.petitions.moveon.org/sign/why-is-trump-hiding-his?source=c.em&r_by=5915845

The collection of more than 438,000 petition signatures was done by Americans for Tax Fairness Action Fund, CREDO Action, Daily Kos, MoveOn.org, AFL-CIO, Campaign for America’s Future, Courage Campaign, CPD Action, Deluge, Democracy for America, Left Action, National People’s Action Campaign, People Demanding Action, People for the American Way, RootsAction.org, The Zero Hour, USAction, Watchdog.net, and Working Families.

Trump Speech Offers More of the Same: Huge Tax Breaks to Benefit Billionaires Like Himself

WASHINGTON, D.C.—In response to Donald Trump’s economic speech at the New York Economic Club today, Americans for Tax Fairness Executive Director Frank Clemente made the following statement:

“Yet another Donald Trump tax plan offers more of the same and has conflict of interest written all over it. Never has a U.S. presidential candidate been so wealthy and written a tax plan that contains so many huge tax breaks that he would personally benefit from.

“No wonder Trump refuses to release his tax returns. He’s afraid to be exposed for what he is, out for himself and his rich friends. His tax plan has at least $1 trillion in tax breaks for real estate firms and pass-through entities like the more than 500 he controls. His tax plan is larded with loopholes, like a repeal of the estate tax, that Trump’s heirs will personally benefit from.

“And let’s not forget Trump’s economic advisers, mostly billionaires and millionaires from hedge funds, private equity, banks and real estate. Trump’s tax plan offers them a cornucopia of carve-outs and tax breaks that will make them richer at the expense of everyone else.

“Trump proposes to eliminate the estate tax to boost the inheritances of the families of millionaires and billionaires. His plan to eliminate the estate tax would lose $270 billion over the next decade. His previous plan was originally estimated to give his heirs tax breaks of $4 billion to $7 billion. But his new plan to subject capital gains held at death to tax could significantly lower that windfall. The federal estate tax is only paid by very wealthy families—those worth at least $5.5 million. The estate tax is a small curb on the accumulation of dynastic wealth, and is a key tool in reducing economic inequality.

“Trump plans to give multinational corporations with profits stashed offshore an immediate tax cut of about half a trillion dollars. Big American corporations like Apple, Pfizer and Microsoft, hold $2.4 trillion in earnings overseas. They should be required to bring those profits back and pay the up to $700 billion in U.S. taxes they owe. Trump proposes to have them bring their profits back by slashing their tax rate from 35% to just 10%. This would only raise about $150 billion. This would hand tax-dodging multinational corporations an undeserved tax break of about $550 billion.

“Trump wants to slash the official corporate tax rate by more than half—from 35% to 15%. Corporations already don’t pay their fair share of taxes at a time when they are enjoying record profits. Thanks to loopholes the U.S. tax rate of our profitable large corporations is only 14%, according to a government study. Rather than fix the problem of rampant corporate tax dodging, Trump’s plan would make it worse.

“Once again, Trump has not said how he will pay for these massive handouts to the wealthy and big corporations. It will either go on the government’s credit card or working families and communities will have to pick up the tab in the form of massive cuts to public services. So Trump’s plan actually affects our inequality problem—by increasing it.

For more analysis of Trump’s tax plan by Americans for Tax Fairness Action Fund, and for a comparison of Trump’s tax plan with Hillary Clinton’s tax plan, go here.

New ‘Trump Loophole’ Would Cost $1 Trillion In Lost Federal Revenue Over Ten Years

Republican presidential candidate Donald Trump’s proposal to slash the tax rate on so-called business “pass-through” entities would lose almost $1 trillion in federal revenue over 10 years, according to a recent analysis by a non-partisan think tank. Trump would personally benefit handsomely from this proposal because he appears to derive most of his income from about 500 pass-through entities.

“Once again, we see whose interests Donald Trump would represent if he is elected,” said Americans for Tax Fairness Action Fund Executive Director Frank Clemente. “His huge tax cut for ‘pass through’ entities would cost the American people a trillion dollars in order to benefit the owners of big real estate firms and Wall Street investors, with himself at the front of the line. Instead of paying his fair share to invest in America, Trump is choosing to slash the taxes owed by extremely wealthy people like himself.” Continue reading →

Despite New Questions of Russian Connections, Trump Continues to Refuse to Release Tax Returns

Washington, D.C. – Despite new allegations about Donald Trump’s business ties to Russia, Trump still refuses to release his federal tax returns, raising even more questions about what he is hiding.

Conservative columnist George Will raised the issue on Fox News, saying Trump refuses to release his tax returns because they may show “he is deeply involved in dealing with Russian oligarchs.” Continue reading →

Clinton Ad Highlights Need For Urgent Action By Obama To Prevent Tax-Dodging Corporate Mergers

Washington, D.C. – Americans for Tax Fairness Action Fund applauds Hillary Clinton’s new campaign ad denouncing Johnson Controls for “gaming the system and moving profits to Ireland so they can avoid paying taxes here at home.”

“With this ad, Hillary Clinton makes a clear case for why the Obama Administration should close the loophole that will allow Johnson Controls to walk away from the taxes it owes on $8.1 billion of untaxed offshore profits,” said Frank Clemente, executive director of Americans for Tax Fairness Action Fund. “The Administration can, and should, act quickly. Pfizer, the giant pharmaceutical company, is trying to take advantage of the same loophole, which could allow it to dodge tens of billions in taxes when it too merges with an Irish company.” Continue reading →

Clinton Corporate Inversion Proposals Would Kill Tax Benefits of Pfizer-Allergan Merger

Washington, D.C. – Frank Clemente, executive director of Americans for Tax Fairness Action Fund, released the following statement in support of Hillary Clinton’s plan to end corporate inversions:

“We support Secretary Clinton’s bold proposal to close the corporate inversion tax loophole, which lets U.S. multinationals desert America to dodge taxes by changing their legal address to an offshore location, typically a tax haven.

“If this proposal were to become law, the tax benefits of the planned Pfizer-Allergan merger would evaporate. Continue reading →

Trump Tax Plan: Huge Tax Cuts For The Rich & Big Corporations, Huge Loss Of Revenue

Washington, D.C. – Americans for Tax Fairness Action Fund Executive Director Frank Clemente made the following statement about Donald Trump’s tax plan today.

“The emperor has no clothes. Despite all his populist talk that it’s ‘outrageous’ how little tax multimillionaires and ‘the hedge fund guys’ pay, Donald Trump’s tax plan is yet another giveaway to the super rich and big corporations. The top 1% will get a tax cut of $184,000 a year, while the bottom 20% will get a tax break of just $250, according to Citizens for Tax Justice. Trump’s tax giveaways will cost the American people more than $10 trillion over 10 years. That’s $10 trillion less for education, infrastructure, health care, retirement security, medical research and more. Continue reading →