DONALD TRUMP: So ridiculous. I have a great balance sheet. When I did the old post office on Pennsylvania Avenue, the United States government because of my balance sheet, which they actually know very well, chose me to do the old post office between the White House and Congress.
Q [to WELD]: You successfully brought taxes down as governor of Massachusetts. Whose tax plan makes more sense to you?
BILL WELD: Advantage Trump on tax plans, though his is not detailed.
Q: What does it mean to you that Mr. Trump has not released his tax returns?
BILL WELD: Yes, of course he should make his tax returns public. (Two years of mine will be out next week).
The "carried-interest tax loophole" allows managers of investment funds to treat the bulk of their earnings as long-term capital gains instead of income. The current tax rate on capital gains for higher-income tax brackets is 20%. The ordinary tax rate for the same ultra-wealthy class is 39.6%. This tax break benefits only about 2,000 people in the country. The Congressional Budget Office estimates that taxing carried interest at ordinary rates would net $18 billion over 10 years. ["Capital and Main," by Judith Lewis Mernit, June 21, 2016]
In plain English, yes, Trump is proposing getting rid of a tax loophole that would raise taxes on a few wealthy people, and lower taxes by $18 billion overall (if the revenue were distributed in a way that benefited other taxpayers).
Trump: One thing I'd do is get rid of carried interest. One of the greatest provisions for people like me, to be honest with you, I give up a lot when I run, because I knock out the tax code. Clinton could have done this years ago, by the way. She was a US senator.
Clinton: When I was a senator, I did vote to close corporate loopholes. I voted to close one of the loopholes he took advantage of when he claimed a billion-dollar loss that enabled him to avoid paying taxes.
Trump: We have corporations leaving--massive corporations and little ones, little ones can't form. We're getting rid of regulations which go hand in hand with the lowering of the taxes. We're bringing the [corporate] tax rate down from 35% to 15%. We're cutting taxes for the middle class. We are cutting them big league for the middle class. Clinton is raising your taxes and I'm lowering your taxes.
Trump: One thing I'd do is get rid of carried interest. One of the greatest provisions for people like me, to be honest with you, Clinton could have done this years ago, by the way. She was a US senator.
Clinton: I've been in favor of getting rid of carried interest for years, starting when I was a US senator.
Trump: Why didn't you do it?
Clinton: Because I was a senator with a Republican president.
Trump: Oh, really?
Clinton: I will be the president and we will get it done. That's exactly right.
Trump: You could have done it, if you were an effective senator. But you were not an effective senator.
Clinton: Under our Constitution, presidents have something called veto power.
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| 2016 Presidential contenders on Tax Reform: | |||
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Republicans:
Sen.Ted Cruz(TX) Carly Fiorina(CA) Gov.John Kasich(OH) Sen.Marco Rubio(FL) Donald Trump(NY) |
Democrats:
Secy.Hillary Clinton(NY) Sen.Bernie Sanders(VT) 2016 Third Party Candidates: Roseanne Barr(PF-HI) Robert Steele(L-NY) Dr.Jill Stein(G,MA) | ||
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