Trump may also propose tax cuts in the case of fiscal deficits:
1. Reduce the capital gains tax to encourage investors to invest and encourage capital flow to stimulate the economy.
Capital gains are only the gains made by sellers when they sell stocks, bonds, real estate and other capital goods. The capital gains tax is lowered, and the beneficiaries are mostly rich Americans. Encourage the rich to invest and promote the flow of assets through tax cuts. Although the tax revenue has been reduced, the repeated flow will not reduce the tax revenue of the country, but a few times, thus stimulating economic development.
2. Lowering the payroll tax to encourage consumers to spend is conducive to restoring the economy.
Compared with the previous capital gains tax, it is a preference for the rich, and reducing the wage rate is a preference for blue-collar workers. Payroll tax refers to the tax levied on the income of employees and employers, which is different from personal income tax. Payroll tax is an important source of funds for government medical insurance plan and social security plan, and individual tax is a supplement to federal and local government accounts. Lowering the payroll tax can keep more people's labor income in their own hands and have more funds in their hands to help consumption. Although it reduces the income from payroll tax, it stimulates national consumption and promotes economic growth as a whole. Moreover, the payroll tax flowing into the government security plan and social security plan will not have a great impact on the national tax revenue, but will have a pulling effect on the overall layout.