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
|
|
|
Payroll Tax
|
|
|
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
|
|
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
|
|
|
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
|
|
An Exit Tax for Companies on Their Unrepatriated Earnings
|
Pass-Through Entities
|
|
|
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
|
|
Net Investment Tax
|
|
|
Affordable Care Act
|
|
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
|
|
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
|
|
|
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
|
|
* 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:
Disclaimers:
Proposals as of September 19, 2016. Proposals are Subject to Change.
This Material is for Information Only. Per I.F.S.G Policy, this business will not any candidate.
I.F.S.G. does not give tax advice. You should direct any questions or concerns to a tax professional
