The two front runners are Hillary Clinton and Donald Trump. Let’s take a look at their proposed tax plans.
Clinton plans a mandatory minimum of 30% tax on income above $1MM and an additional 4% surtax on income above $5MM. Clinton plans to add more tax credits for taking care of elderly parents up to $1200 and out of pocket health care costs. Clinton plans to raise capital gains from anywhere between 27.8 percent and 47.4 percent (capital gains is currently at 23.8%). Clinton plans to reduce the $5MM estate tax threshold to $3.5MM and increase the estate tax to to 45% from 35%.
Bottom line with President Hillary Clinton, you will pay more in taxes no matter who you are.
Trump plans to consolidate the current seven tax brackets into four tax brackets – 0, 10, 20, and 25 percent. Trump plans to increase the standard deduction to $6,300 from singles earning $25,000 or less and to $12,600 from married couples earning $50,000 or less and eliminate almost all deductions other than mortgage deductions and charitable contributions. Trump plans to eliminate the gift tax, the alternative minimum tax, the Affordable Care Act tax, the marriage penalty and the federal estate tax. Trump plans to change the corporate tax of eight tax brackets which currently ranges from 15 to 35 percent to one flat tax of 15 percent.
Bottom Line with President Donald Trump, you will pay less in taxes no matter who you are.