Trump vs Clinton Tax Plans

In less than a month, we go to the polls to vote for the next President of the United States. One of the biggest concerns for everyone is taxes. The following is a side by side comparison of where each candidate stands on this issue.  No matter whether you are single, married, retired, or a business owner, I encourage you to take some time and review this information. In addition, there are links to both candidates tax plans for more detail.  I hope you find this information helpful. 

	Trump	Clinton
Corporate Tax	Top Rate of 15% Eliminate Most Deductions & Credits Except Research and Development Manufacturers lose interest deduction Repeal Corporate AMT	No Proposed Rate Changes Tax Credit to Businesses that invest in Community Development & Infrastructure Provide Tax Credits to Businesses that Hire Apprentices or Share Profits with Employees
Payroll Tax	No Proposed Change	No Proposed Change
Income Tax	*No Income Tax If You are Single & Earn Less than $15,000 or Married and Jointly Earn Less than $30,000 *Three Tax Brackets, 12%, 25%, and 33% *See Below No Marriage Penalty Provision Tax Carried Interest as Ordinary Income	Keep Current Tax Brackets and Add a New Top Bracket of 43.6% *See Below Tax Carried Interest as Ordinary Income 30% Minimum Tax on High Income (>$1 Million AGI) Individuals 4% Surcharge on AGI over $5 Million. Extend the Current College Tax Credit
Capital Gains	Maintain Maximum Rate of 20% for Highest Bracket	Sliding Scale Benefit No Benefit If Sold in First 2 Years Greater Benefit If Sold Between 2 and 6 Years Full Benefit If Held for 6 Years
Alternative Minimum Tax	Repeal	No Proposed Changes
Estate Tax	Repeal but Capital Gains Held Until Death Will Be Subject to Tax (First $10 Million Tax Free) Contribution of Appreciated Assets into a private charity established by the decedent or the decedent's relatives will be disallowed.	Permanently Reduce the Threshold for Estates to $3.5 Million for Individuals & $7 Million for Married Couples with No Adjustment for Future Inflation Estate Tax Rates would be 45%, 50%, 55%, & 65%) **See Below Lifetime Gift Tax Exemption set at $1 Million
International Tax	A One-Time Deemed Repatriation of corporate cash held overseas at 10% Tax Rate End the Deferral of Taxes on Corporate Income Earned Abroad	An Exit Tax for Companies on Their Unrepatriated Earnings
Pass-Through Entities	No Proposed Changes 15% Rate Only Applies to Business Taxed as Corporations	No Proposed Changes
Exemptions, Deductions, and Credits	Cap Itemized Deductions at $100,000/Individuals & $200,000/Joint Increase Standard Deduction to $15,000/Individual & $30,000/Joint Eliminate Personal Exemptions	Limit Value of Most Deductions to 28%
Net Investment Tax	Repeal	No Proposed Changes
Affordable Care Act	Repeal & Replace	Strengthen
Childcare: Business	Credit for Onsite Child Care Increased to $500,000 and Recapture Reduced to 5 Years Direct Employee Subsidies Not Taxed to Business but, Taxed to Employee	No Proposed Changes
Childcare: Individual	Above the Line Deduction for Childcare (Up to 4 Children Capped at State Average Costs) Exclusion Available to Stay-at-Home Parents & Grandparents Spending Rebates Available Through the Earned Income Tax Credit	Cap Childcare Costs at 10% of Income. Guarantee Up to 12 Weeks of Paid Family & Medical Leave to Care for a New Child. Workers Receive at Least Two-Thirds of Their Current Wages, Up to a Ceiling, While On Leave
Retirement Accounts	No Proposed Changes	Eliminate Tax Benefits for Contributions to Qualified Plans Once Assets Sufficient to Fund Specified Annuity Amount
Dependent Care Savings Accounts (DCSAs)	DCSAs Available to Benefit  Specific Individuals, Including Unborn Children Total Yearly Contributions Limited to $2000/Year When Established for Children, Funds Remaining in the Account When the Child Reaches 18 Years Old Can Be Used for Education Expenses Government Provides 50% Match on Parental Contributions Up to $1000/Year	No Proposed Changes

*  Trump Tax Brackets

	Single	Joint
0%	Up to $15,000	Up to $30,000
12%	$15,001-$37,500	$30,001-$75,000
25%	$37,501-$112,500	$75,001-$225,000
33%	$112,501 and Above	$225,001 and Above

*  Clinton Tax Brackets

10%,15%,25%,28%,33%,35%,39.6%,43.6%

Income Ranges for Each Bracket Unknown at this Time

Sources:  Accounting Today, The Trump Organization, Hillary for America, PolitiFact, Tax Foundation, Tax Policy Center, OnTheIssues.org, Bloomberg, CBIZ.com

Candidate Tax Plan Web Pages:

Clinton Tax Plan: https://www.hillaryclinton.com/issues/a-fair-tax-system/

Trump Tax Plan: https://www.donaldjtrump.com/policies/tax-plan

Disclaimers:

1. Proposals as of September 19, 2016.  Proposals are Subject to Change.
2. This Material is for Information Only.  Per I.F.S.G Policy, this business will not any candidate.
3. I.F.S.G. does not give tax advice.  You should direct any questions or concerns to a tax professional