There are several hot topics, to say the least, in this year’s Presidential Election. And to no surprise, taxes and economic strategies are near the top of the list. And while I’m sure we will see changes to the candidate’s tax plans, they have been out on the stump and posting on their websites their individual tax game plans.
To help you navigate the polices (and get past the politics, if even possible), we’ve gathered their current stances on the issues of income taxes, corporate taxes, estate tax, tax credits and deductions.
The tax positions of the Democratic and Republican presidential candidates are extremely different. There will be significant changes to how your income is taxed depending on who wins the election. Below is a summary of the significant positions of each candidate.
We will keep you updated as things change. Because we know they will!
Presidential Tax Plan Comparison
- Cuts taxes on individuals and businesses – Proposes a new 0% tax bracket on income up to $50,000 and expands the 10% bracket to $100,000 of taxable income for married couples. For single filers, the top of each bracket is half that of married people.
- Proposes to eliminate the Alternative Minimum Tax.
- Proposes to eliminate the 3.8% Net Investment Income Tax.
- Proposes a 15% corporate tax rate and extends this rate to income from pass-through entities, including LLCs, S corporations and sole proprietors.
- Businesses could expense most equipment and other fixed asset purchases (land being a noted exception).
- Proposes to cap the deductibility of interest expense.
- Increase taxes on upper-income individuals and businesses.
- Tax increases will come in the form of:
- Additional limitations on itemized deduction.
- A 4% surtax on ordinary income over $5 million.
- A 30% minimum tax on taxpayers with income more than $1 million.
- Increasing the top capital gains tax to 24% for income over $5 million.
- Proposes to back efforts to make profits from S corporations in a service business subject to Self-Employment Tax (Currently profits from unincorporated businesses are subject to this 15.3% tax).
- Limit the total value of tax-deferred and tax free retirement accounts.
- Proposes a $1,200 tax credit for caregiver expenses.
- Proposes to restore the federal estate tax to 2009 levels when the estate tax rate was 45% and the exemption was $3.5 million.