Andrew Crighton
Life Editor
It’s a very special time of year and for two reasons no less. A combination of everybody’s two favorite things in life: taxes and politics.
Any other year, tax season would simply come and go as quickly as your tax return; however, taxes are an important topic in the ongoing presidential campaign.
What is your candidate’s tax plan? What about their competition?
Donald Trump’s tax plan for individuals reduces the current seven tax brackets into four, starting with a 0 percent tax rate.
For individuals who make up to $25,000 and married couples with a combined income of up to $50,000 there will be no income tax. The highest taxed bracket in Trump’s plan is 25 percent, for individuals who earn over $150,000 and married couples with a combined income of over $300,000.
Trump’s tax plan establishes a single, 15 percent corporate tax rate. Additionally, Trump plans to remove the Estate Tax, referred to as the “Death Tax.”
Trump plans to fund this change through closing loopholes that are in the current tax code that corporations use to avoid paying taxes, as well as through a one time deemed repatriation of 10 percent on companies who have money overseas.
According to Trump’s plan these companies would not have to bring that money back into the country; however, they must still make that payment. Trump’s tax plan in full can be found at: donaldjtrump.com.
Hillary Clinton does not have an official plan published such as Trump, but Clinton’s website does make mention of what is planned.
Clinton’s tax issues revolve around closing tax loopholes for the wealthiest and using that money for things such as her New College Compact, which would grant up to a $2,500 tax credit to students. In terms of business taxes, Clinton aims to, “simplify tax filing and provide targeted tax relief for small businesses.” Clinton also proposes a 15 percent tax credit to companies who provide profit sharing with their employees on top of wages and pay increases.
In order to ensure 12 weeks of guaranteed paid family and medical leave, Clinton plans to “ensure that the plan is fully paid for by a combination of tax reforms impacting the most fortunate.” Clinton’s tax policies can be found at: hillaryclinton.com.
Republican candidate Ted Cruz proposes to simplify the tax code with two flat tax rates, one for personal income and one for businesses. For personal income, there will be a 10 percent rate. A standard $10,000 deduction is planned to “[exempt] a large amount of initial income for low- and middle-income taxpayers.”
Cruz proposes a flat business tax of 16 percent, removing the corporate income tax and payroll tax. Cruz also plans to remove the Estate Tax from the books. Cruz’s tax plan can be found at: tedcruz.org.
Bernie Sanders has many proposed changes when it comes to taxes. Chief among them are closing tax loopholes in order to fund his Protect Pensions plan and funding his College for All plan with a tax on “Wall Street speculators” that is projected to produce $300 billion in revenue.
Sanders’ plans to provide 12 weeks of paid family and medical leave with a 0.2 percent increase in the Payroll Tax.
In Sanders’ Rebuild America Act, an estimated $1 trillion will be generated from taxing the profits that companies shift offshores, this money will be shifted into rebuilding the American infrastructure. Sanders plans to expand Social Security.
This proposition is to be paid for by lifting the cap on taxable income above $250,000. Renewable energy is also contained within Sanders’ plan; by removing tax breaks and government subsidies for fossil fuel companies, this is his End Polluter Welfare Act. The whole of Sanders’ plans can be found at: berniesanders.com.
Marco Rubio’s tax plan reduces the number of tax brackets for personal income, from seven to three. These three brackets are 15 percent, 25 percent and 35 percent. The caps for the 15 percent bracket are $75,000 and $150,000 for individuals and joint filers, respectively. Those caps are increased to $150,000 and $300,000 for the 25 percent bracket; over these thresholds are placed into the 35 percent bracket.
Included in the personal tax plan are new personal tax credits, $2,000 for individuals and $4,000 for joint filing couples. Rubio proposes a flat tax on business, 25 percent.
Marco Rubio has also proposed immediately ending the Estate Tax. Rubio is the only of the three Republican candidates to use the proper term Estate Tax, as opposed to the popularized “Death Tax”.
Rubio’s plan proposes 0 percent taxation of capital gains and dividends as well. Rubio’s plan can be found in whole at: marcorubio.com.
