Trump updates tax plan

Republican presidential nominee Donald Trump released new details on his tax plan in an Aug. 8 speech. His plan adopts aspects of House Republicans’ tax reform blueprint, indicating a move by the candidate to veer closer to the Republican party’s tax agenda.

Trump’s former plan, released in September 2015, laid out four tax brackets of 0%, 10%, 20% and 25%. His new plan adopts the House Republicans’ three-bracket approach of 12%, 25% and 33%. In a departure from his previous plan, Trump also said he would seek to eliminate carried interest preferences.

In addition to those changes, Trump again highlighted his proposal to equalize tax rates for business income at 15%, regardless of whether that income is earned through a pass-through or a corporation. Trump also vowed to put a hold on regulations and impose a 10% tax on repatriated earnings.

On the individual side, Trump proposed a full deduction of the “average cost of child care spending” and a repeal of the estate tax.

Tax professional standards statement
This content supports Grant Thornton LLP’s marketing of professional services and is not written tax advice directed at the particular facts and circumstances of any person. If you are interested in the topics presented herein, we encourage you to contact us or an independent tax professional to discuss their potential application to your particular situation. Nothing herein shall be construed as imposing a limitation on any person from disclosing the tax treatment or tax structure of any matter addressed herein. To the extent this content may be considered to contain written tax advice, any written advice contained in, forwarded with or attached to this content is not intended by Grant Thornton LLP to be used, and cannot be used, by any person for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code.

The information contained herein is general in nature and is based on authorities that are subject to change. It is not, and should not be construed as, accounting, legal or tax advice provided by Grant Thornton LLP to the reader. This material may not be applicable to, or suitable for, the reader’s specific circumstances or needs and may require consideration of tax and nontax factors not described herein. Contact Grant Thornton LLP or other tax professionals prior to taking any action based upon this information. Changes in tax laws or other factors could affect, on a prospective or retroactive basis, the information contained herein; Grant Thornton LLP assumes no obligation to inform the reader of any such changes. All references to “Section,” “Sec.,” or “§” refer to the Internal Revenue Code of 1986, as amended.