Sep 27, 2021 Last Updated 22:16 PM EDT


Donald Trump favors higher tax rate on rich, hedge funds

Aug 30, 2015 11:38 PM EDT

Raising his voice against the uniform tax for all the Americans, the Republican Presidential candidate Donald Trump said that rich should pay more tax than middle and other regular working classes. While favoring lower tax regime for the corporate sector, he suggested for cut in government spending and no need of raising debt ceiling.

He also assured Americans that he would bring back the jobs that the country lost to Asian economies like China. "I'll bring back jobs from China," said Trump in an interview with Bloomberg. Trump shared his views on several issues including corporate inversion, taxation, currency devaluation, job creation, etc.

Trump holds the view that organizations that run hedge funds make huge profits, but pay very less tax. I always want to lower tax for middle class people. The billionaire Trump openly admitted that raising tax on himself and people like him as well.

While advocating for changing the tax code, Trump said: "I would change it. I would simplify it. You have seen my statements, I do very well, and I don't mind paying some more taxes."

People those make hundreds of millions of dollars every year pay some tax, but it's very little what they pay, opined Trump.

Strongly reacting to low tax payments from hedge funds, Trump said: "The middle class is getting clobbered in this country. You know the middle class built this country, not the hedge fund guys. But, I know people in hedge funds that pay almost nothing and it's ridiculous, OK." 

However, Trump's views on more tax on hedge funds fall in line of those expressed by Democrats' Hillary Clinton. Trump also said that there wouldn't be any need to raise debt ceiling bar. "Honestly there's so much fat in Washington. If you had the right people in there you could cut it and there would be no problem," observes Trump.

Trump himself is worth $2.5billion. With flat tax being in place, he pays the same tax rate, at which middle class people are also shelling out their money. 

"Americans should pay more on every dollar of additional income," he said.

Trump also criticized the ways that corporate companies explore to avoid tax payment. Trump is firm on taking the issue of corporate inversion as some companies re-incorporate overseas to avoid tax payment by taking undue advantage of registering in tax havens. "Due to the corporate inversion, it's estimated that $2.5 trillion worth money lying outside the US. That can't come in. Now, what's happening is that companies are leaving this country," observes Trump. 

For monetary benefits, earlier it used to be leaving New York for Florida, or leaving New Jersey for Texas. "Now, the situation has become such that companies leave one country for another country. Many companies with huge capacities of creating thousands of jobs are leaving this country to go out and get their money," explains Trump.

Trump sees the only solution to this corporate inversion in lowering the taxes. 

Trump has always been targeting Chinese government for drastic measures such as currency devaluation. Each time the currency is devalued that would result in lowering prices of Chinese goods. One would argue that cheaper Chinese goods benefit Americans as well. 

While admitting that he was not against cheaper products available for Americans, Trump said he was opposing only such measures that would kill competitiveness of US companies. "This (currency devaluation) has been a big thing for me for a long time. Not only that, Japan is doing the big devaluation now, so it's impossible for our companies to compete," explains Trump.

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