Donald Trump Quotes
One thing I'd do is get rid of carried interest.
Trump, Donald. "Second Presidential Debate." Washington University, St. Louis, MO, 9 Oct. 2016.
Even on Medieval days in Europe, the wealthy barons paid lower tax rates that their lowest peasants. Relief from taxes was one of the privileges of the very rich. The practice has been made more cosmetic, but the result seems to have been the same into the 21st century.
The George W. Bush administration when they had a Republican-controlled Congress, had amended the tax laws to treat the earnings of the hedge fund managers differently from people who manage other enterprises in the nation. They gave a group of very wealthy managers whose earnings were already amongst the highest of any managers in the country a huge tax break, while little public attention was paid to the subtlety of complex tax laws. Daschle and others began to draw public attention to the inequity.
The tax rates on income from working is much higher than on income generated from money which is invested. The reason for this is that the government wants economic growth and lowering the tax rate on investment profits will produce more investment which theoretically creates more jobs and strengthens the economy. However, most workers have no choice about whether they have to work. Lowering their tax rate will not induce them to work more. This not only produces a patently unfair burden on the worker compared to people who have capital to invest—usually among the wealthiest Americans. Another problem is that there are many forms of investment that does not produce any benefit for the United States. Many people invest in overseas banks, non American companies. These we tax at a low rate and all the benefits of the investment go to the foreign country.
[If a business takes other investors in to finance its growth or expansion, there are no tax consequences with the equity investment. However, if the same business borrows money from a bank, the business can deduct the interest cost of the debt from their federal and usually state taxes. If an individual buys a house and takes a large mortgage, the owner can deduct the interest from his taxes. However, if she instead does the more prudent and safe thing and puts more cash equity and takes a smaller mortgage, she only gets a small tax deduction.]
Donald John Trump is an American media personality and businessman who served as the 45th and 47th president of the United States.
