Politics

Trump Proposes Major Changes To Tax Code

Republican nominee Donald Trump rolled out his economic platform during a speech in Detroit where he called for major changes to the U.S. Tax Code.

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Specifics were nowhere to be found as Donald Trump had to overcome technical difficulties and more than a dozen interruptions from demonstrators during a speech in Detroit. As President he says he'll simplify the current tax code into three brackets.

"Twelve percent, 25 percent and 33 percent. For many American workers their tax rate will be zero," says Trump.

Houston Public Media's Coverage of Election 2016

Houston Public Media's Coverage of Election 2016

Because he didn't say at what income levels the tax rates would increase, it's impossible to determine who would benefit or be hurt under his plan. Steven Craig is an economics professor at the University of Houston. He says reducing the number of tax breaks creates its own problems.

“If your tax goes from 15 percent to 25 percent compared to if it just goes up one or two percent with more brackets, then there’s a bigger incentive to fool around right on those margins,” Craig says.

Trump also plans to help families by making childcare deductible, and businesses by cutting the corporate income tax rate to 15 percent. Craig thinks that tax revenue would be made up elsewhere.

"Corporations are finding ways not to pay taxes in this globalized environment, it's very hard to write rules to make the corporations pays taxes. And that means the individual tax burden is going to rise," he says.

While it's difficult to determine what affect Trump's plan would have on the economy without more specifics, Craig thinks both candidates need to focus in the ever-growing national debt.

“The argument really should be about how big of a deficit are we going to run? And then, we do have this big debt are we going to start paying that debt or do we just let it keep growing?”

Democratic nominee Hillary Clinton plans to discuss her economic agenda later this week.

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