Donald Trump is characteristically outspoken on matters such as immigration, climate change and Carly Fiorina's face — all of which he's voiced clearly. However, he hasn't been as vocal about his actual policy plans.
However, Trump recently previewed his tax plan in an appearance on CBS' "Face the Nation," saying the full proposal is about two weeks away.
His plan has attracted some support from Democrats, notably Sen. Elizabeth Warren, D-MA — the woman many liberals hoped would run for president.
The proposed plan would reduce taxes for the middle class, reduce corporate taxes and increase taxes on the upper class, particularly for hedge fund mangers and other top CEOs.
“It is hard to respond to something that is not very well described or fleshed out,” said Orange County Democratic Chairperson Matt Hughes. “Perhaps the devil is in the details."
He said broadly speaking, Democrats may support the plan because, in the past, they have supported raising taxes on billionaires and millionaires and providing adequate support for the middle class.
“We may have found a tiny bit of reasonable policy out of Donald Trump, who is unreasonable on so much else,” he said.
Courtney Edwards, associate professor of accounting at the UNC Kenan-Flagler Business School, said there are two main parts of his tax plan proposal so far: carried interest and lowering corporate taxes along with eliminating multinational hurdles.
Changing the tax rate would affect hedge fund managers, who are currently taxed as capital gains — or at a preferential tax rate lower than those applied to others. she said.
Instead of being eligible for a 20 percent tax rate, they would have a maximum of 39.6 percent, according to Trump's proposal. Edwards said the plan has been discussed as a way to create fairness in the system and raise revenue.
Currently, U.S. companies that operate in foreign countries through foreign subsidiaries are paying taxes in other countries. They do not have to pay the U.S. until repatriation money comes home to the parent company. After than, the money is subject to U.S. tax rates. The U.S. corporate tax rate is the highest tax rate in the developed world. she said.
“It’s hard to not acknowledge that we are out of step with the corporate tax rate with the rest of the world, there is general bipartisan support for this,” Edwards said. “There is nothing particularly novel about his comments with regard to tax policy."
“There are not enough details to know how it would affect voters because he didn’t say anything that most candidates would disagree with,” Edwards said. “I don’t know how it would distinguish him from other candidates.”
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