Second Trump Term Would Put Tax Cuts Back on the Agenda
Article from For Liberty by Norm Leahy.
What does President Donald Trump have planned on the tax front if he wins a second term?
The Tax Foundation looked at the various statements the president and his team have made about taxes. Their conclusion? While there aren’t all that many specifics – certainly not enough to put a dollar figure on — some broad themes have emerged:
President Trump’s campaign tax proposals fall under two categories outlined in the agenda— “Jobs” and “End Our Reliance on China”—with additional details on the proposals to be shared over the coming weeks.
First, he proposes an unspecified tax cut to boost take-home pay and an unspecified “Made in America” tax credit. Additionally, he proposes to expand Opportunity Zones, a program created under the TCJA to spur investment in economically distressed census tracts by providing capital gains tax relief for individuals and businesses investing in qualified opportunity zones. These three proposals are grouped with other policies that are intended to create jobs.
There are also proposals regarding personal taxes:
The president has called for forgiveness for the September 1 through December 31, 2020 employee-side payroll tax deferral and permanent cuts to the payroll tax. Additionally, he has mentioned the idea of reducing the capital gains tax rate from 20 percent to 15 percent (whether this is inclusive of the 3.8 percent Net Investment Income Tax (NIIT) is unclear) as well as indexing capital gains to inflation.
President Trump has called for “middle-class tax cuts” in the form of rate reductions.
Overall: A second Trump term would see a renewed push for more tax cuts, expanded tax credits, and incentives to bring jobs and manufacturing back to the United States. But we’ll have to wait and watch for more specific proposals to emerge.
Image Credit: Gage Skidmore from Peoria, AZ, United States of America [CC BY-SA 2.0 (https://creativecommons.org/licenses/by-sa/2.0)]