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Time to Compare Candidate's Tax Plans!

Time to Compare Candidate's Tax Plans!

 

As the Republican and Democratic national conventions begin, it's a good time to compare and contrast each candidates tax plan

 Clinton Tax Plan         
Hillary Clinton proposes raising taxes
on high-income taxpayers, modifying
taxation of multinational corporations, repealing fossil fuel tax incentives, and increasing estate and gift taxes.

  • Her proposals would increase revenue by $1.1 trillion over the next decade.
  • Nearly all of the tax increases would fall on the top 1 percent; the bottom 95 percent of taxpayers would see little or no change in their taxes.
  • Marginal tax rates would increase, reducing incentives to work, save, and invest, and the tax code would become more complex.
  • The analysis does not address a forthcoming proposal to cut taxes for low- and middle-income families.
  Trump Tax Plan     


His plan would significantly reduce marginal tax rates on individuals and businesses, increase standard deduction amounts to nearly four times current levels, and curtail many tax expenditures.

  • His proposal would cut taxes at all income levels, although the largest benefits, in dollar and percentage terms, would go to the highest-income households.
  • The plan would reduce federal revenues by $9.5 trillion over its first decade before accounting for added interest costs or considering macroeconomic feedback effects.
  • The plan would improve incentives to work, save, and invest.
  • However, unless it is accompanied by very large spending cuts, it could increase the national debt by nearly 80 percent of gross domestic product by 2036, offsetting some or all of the incentive effects of the tax cuts.

Candidates Differ on Taxing Corporations

The corporate income tax is a major revenue source for the U.S. government, but it has been shrinking for decades, and the three main presidential candidates could not differ more dramatically on what to do about it.

Trump Plan

Donald Trump, the Republicans' nominee for the Nov. 8 election, wants to cut the corporate tax rate from 35% to 15%.

While the Tax Policy Center, a Washington D.C. based tax research group, has said that under Trump's plan, corporate income tax revenues would fall $1.9 trillion from 2016 to 2026, Trump, a real estate developer, described his proposals as revenue neutral, saying that reduced tax rates would be paid for by eliminating some tax breaks and repatriating corporate cash held overseas.

Steven Rosenthal, a Tax Policy Center senior fellow, said Trump's plan is a standard business focused approach, but notes that it was difficult to fully evaluate because the drafting was incomplete.

Clinton Plan
 
Hillary Clinton,  has not promised a corporate tax cut. Like Trump, she has called for closing loopholes that corporations use to avoid taxes.

But unlike Trump, her plan would raise corporate tax revenues by $136 billion over 10 years, the Tax Policy Center said.
                              

Have a Tax Problem?
 
Contact the Tax Lawyers at
Marini & Associates, P.A.
 for a FREE Tax Consultation Contact US at 
or Toll Free at 888-8TaxAid (888 882-9243).

Read more at: Tax Times blog

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