Trump: ‘We’re Going To Reduce Taxes Further’ — 5 Ways He Wants To Do That
Written by
Jordan Rosenfeld
Edited by
Chris Cluff
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One of the issues that is top of mind for voters as they weigh their choices ahead of the 2024 presidential election is whether or not the next president will lower or raise taxes.
Former President Donald Trump told Tesla CEO Elon Musk in a recent interview that he plans to reduce taxes further, should he be elected.
He added, “We’re going to reduce taxes further. I gave the largest [corporate] tax cuts and we were going to reduce taxes still further for middle-income people — not only businesses. … That’s why we had the great job numbers.”
The Tax Foundation breaks down what Trump has said about his plans to reduce taxes.
Corporate Taxes
Trump proved more than friendly to corporations during his first term, when he steeply cut the corporate tax rate from 35% to 21%. Now, he’s promising to do it again, though only a moderate 1% reduction.
Estate and Wealth Taxes
In 2017, Trump signed the Tax Cuts and Jobs Act (TCJA) into law, which raised the estate tax exemption from $5.5 million for single filers and $11.1 million for married couples to $11.4 million for single filers and $22.8 million for married couples in 2018 (and adjusted annually for inflation). Trump would like to make the TCJA permanent, which would mean fewer people are subject to estate taxes.
Excise Taxes
Trump would tax large private university endowments (often in the multi-millions). He also told Musk that he would close up the Department of Education and “move education back to the states” — though it’s unclear what this would mean from a tax perspective, or if that’s even feasible.
Individual Income Taxes
Another benefit of making the TCJA permanent is that it could save the individual income tax cuts that are expiring in 2025, which lowered most individual income tax rates, including the top marginal rate from 39.6% to 37%.
He also has suggested replacing personal income taxes altogether with increased tariffs, namely a universal baseline tariff on all U.S. imports and a 60% tariff on all imports from China.
Ending Taxes on Social Security
Additionally, Trump said he would stop taxing Social Security benefits.
“Seniors should not pay tax on Social Security!” Trump wrote on July 31 on the social media platform Truth Social.
Project 2025’s Impact on Taxes
While there has been conflicting information about whether the controversial Project 2025 is part of Trump’s campaign strategy — Trump himself denies it — some former Trump officials have been linked to the project and many pundits suggest Trump is aligned with it. A few of Project 2025’s tax plans, according to CNBC, include:
- Reducing the federal tax brackets and replacing them with a “two-rate individual tax system” of either 15% or 30% (the latter beginning at incomes of around $168,600)
- Reducing marginal tax rates, lowering the cost of capital and broadening the tax base
- Eliminating “most deductions, credits and exclusions,” such as state and local tax breaks for state and tax breaks for education.
Voters will decide which candidate’s tax policies win their hearts and minds on Nov. 5.
Editor’s note on election coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
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