Trump wants to scale back tax cuts in his economic plan
On Friday, Donald Trump, Republican presidential nominee disclosed a plan for $4.4 trillion in tax cuts, ensuring less generous tax breaks than his original $10 trillion initiative, though proposing to drop today’s top rate for the wealthiest taxpayers.
Trump's proposal, that he detailed in his speech in New York, would cut the top individual rate to about 33% from the current 39.6%. It would increase the standard deduction and also cap itemized deductions, that he said would diminish tax loopholes. Donald told his plan wouldn’t add to the federal deficit.
However, his estimate of the $4.4 trillion cost of the initiative makes use of a mechanism dubbed "dynamic scoring," that assumes that tax drops will provoke faster growth, that in turn will enable some of the tax breaks to pay for themselves.
Besides this, Trump proposed a so-called "Penny Plan" for diminishing federal spending. Donald told that he would get down to shrinking government programs outside of defense by approximately 1% every year.