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Donald Trump's tax plan: 'Zero rate' for some

By Ed Adamczyk
1/5
Donald Trump's tax plan: 'Zero rate' for some
Republican presidential candidate Donald Trump gives the details of his tax plan Monday at Trump Tower in New York City. Photo by John Angelillo/UPI | License Photo

NEW YORK, Sept. 28 (UPI) -- Republican presidential candidate Donald Trump said his tax plan, which would lower the corporate rate to 15 percent, would "cost me a fortune."

He made the comment in New York, the day after he explained his proposed overhaul of the tax code on the CBS' 60 Minutes. Under his plan, low-income and a "large segment" of other Americans would have a "zero rate" of taxes and corporate taxes would be cut.

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"There will be a major tax reduction. It'll simplify the tax code. It'll grow the American economy at a level that it hasn't seen for decades," he said.

The plan features an individual tax rate of zero for those earning $25,000 per year, or couples making less than $50,000 per year, a group now composed of 31 million taxpayers. The top rate, currently 39.5 percent for the wealthiest taxpayers, will be lowered to 25 percent. All business taxes would be lowered to 15 percent.

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Trump's plan would eliminate the marriage penalty and the estate tax and keep the mortgage interest deduction. It would also end the "carried interest" tax break, which allows many investment-fund managers to pay a reduced rate of taxes on their earnings.

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"In other words, it's going to cost me a fortune," Trump said Monday.

He said Sunday the plan would increase tax revenue or maintain it at the current level, saying, "It's a substantial reduction for the middle-income people. Because our middle class...is being absolutely decimated. ... I think it'll be a great incentive for corporations. Overall, it's going to be a tremendous incentive to grow the economy, and we're going to take in the same or more money. And I think we're going to have something that's going to be spectacular. We're going to grow the economy so much."

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