The Republican presidential nominee revealed several promising proposals for small business in his latest address.
Donald Trump knocked his latest tax proposal out of the park, NFIB President and CEO Juanita Duggan told Bloomberg.
The Republican presidential nominee unveiled one of his most detailed economic plans yet in a speech at the Detroit Economic Club on Aug. 8. During his speech, Trump called for simplifying the tax code, abolishing the estate tax, and cutting the corporate tax rate for all businesses.
In particular, Trump’s plan for a single business tax rate has drawn significant praise from owners who say it will level the playing field for small businesses competing with larger companies. The real estate mogul has proposed instituting a single corporate tax rate of 15 percent, regardless of a company’s size, which is a reduction from the current level of 35 percent.
“Mr. Trump’s plan would eliminate the disparity between the way large corporations and small businesses are treated under the code, and all businesses would be taxed at a substantially lower rate,” Duggan said in a statement.
U.S. companies pay the highest federal income tax of the 35 countries in the Organization for Economic Cooperation and Development, Bloomberg reported. Trump also advocated for getting rid of one tax altogether.
“Finally, no family will have to pay the death tax,” Trump said. “American workers have paid taxes their whole lives, and they should not be taxed again at death—it’s just plain wrong. We will repeal it.”
Estates valued at more than $5.45 million will be taxed at 40 percent for the 2016 tax year. The Tax Policy Center estimated that the death tax—also known as the estate tax—generated $18.4 billion in revenue in 2015. Small business owners sometimes fall victim to this onerous tax when a relative is trying to take over a family business.
Trump also updated one of his longest-standing proposals to slash the number of tax brackets from seven to three. Initially, he proposed simplifying the tax codes to brackets of 10, 20, and 25 percent, but his new proposal increases those numbers slightly. Trump now calls for three tax brackets at 12, 25, and 33 percent, numbers that fall in line with the plan House Republicans released earlier this year.
“The new proposal, coming the week after Mr. Trump was hesitant to endorse several prominent Republicans in their re-election races, looked like ‘some sort of peace offering to settle an intra-party squabble,’” Doug Holtz-Eakin, a Republican economist, told The Wall Street Journal.
*Note: This news coverage does not equate to an endorsement of any candidate by NFIB.