Page 49 - Oct Nov 2017

Donald Trump’s Tax Plan and Its Effect on the United States Nationally, Globally and Its Citizens

Trump’s tax plans is they in tax revenue could cre- this growth caused by the

are very vague in sub- ate a strained relationship tax break would make up
stance and impractical in between the United States’ for some of the deficit in
today’s society where cor- revenue stream and the tax revenue even more

porations and individuals expenditures they have so if most of these profits
P take advantage of every budgeted for, thus influ- were distributed in divi-

O break possible. One loop- encing their ability to cre- dends. To further decrease
L hole that exists is that in- ate an economic incentive the tax deficit Trump has

I dividuals can set up LLCs for the U.S. economy. proposed a one-time off-
C and like corporations and National shoring tax that would be
E actually lower their tax paid by any U.S. firm that

rate, this is due to very On a grander scale than has moved its operations
B low unearned income tax the individual, the United overseas. These measures

R rates. By funneling all of States economy would could eliminate the defi-
U your income through these change due to Trump’s tax cit in the short term, but
T mock corporations, indi- plan. After the individual long term the deficit could

A viduals could create a tax changes are accounted for, arguably skyrocket. This
L ceiling of 15%(Trump’s the corporations would is due to a drop in tax rev-

I unearned income alterna- be the next largest factor. enue and a projected in-
T tive rate) even though the Trump plans on dropping crease in spending. Some
Y normal tax brackets go corporate tax rate consid- major expenditures would

up to 33%. Now, it can be erably, which would cre- include border security
reasonably assumed that ate an upwards swing in (the wall) and increases in
this plan once brought to after-tax profits. This ben- military spending. Trump

a cooperative congress efit could go two ways; has promised to decrease
would be tightened up first corporations could expenditures in other fac-

with many more rules pay the excess profit out ets but has only stated that
added to eliminate glaring to shareholders in divi- he will eliminate ineffi-
loopholes and problems dends or second corpora- ciency and cut out waste.

with the plan. In the case tions could reinvest the Trump’s economic policy
of a democratic house or extra money into retained is not very favorable for

senate, these tax reforms earnings. Either way, this the United States econo-
could be shot down en- would give an injection of my. Due to increased glo-
tirely. With the assump- good profits and growth to balization and low rein-

tion that his whole plan the economy. In terms of vestment of profits, the
goes through the decrease United States tax revenue, initial gain from Trump’s

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