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2016 Tax Proposals - Clinton vs. Trump

| October 18, 2016
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Taxes

2016 Tax Proposals

Clinton

Trump

  • Keep current tax bracket structure
  • 4% surcharge on incomes >$5 million
  • Impose “Buffett Rule”: Minimum tax of 30% on incomes over $1.0 million
  • Redefine long-term gains at 2+ years (from current 1+ years)
  • Cut brackets to three: 12-25-33%
  • Boost standard deduction to $15,000 ($30,000 for joint filers)
  • New deduction for individual health insurance premiums
  • New deduction for child care costs and “dependent care savings accounts”

Limit value of itemized deductions to 28% of “face value”

  • Limit itemized deductions other than mortgage interest and charitable gifts·       
  • Cap itemized deductions at $100,000 ($200,000 for joint filers)

Tax “carried interest” as ordinary income

Tax “carried interest” as ordinary income

 

Repeal Alternative Minimum Tax

Lower estate tax unified credit to $3.5 million, raise rates to from flat 45% to progressive 45-65%

  • Repeal Gift & Estate Tax
  • Repeal stepped-up basis on gains over $10 million

 

Repeal “Obamacare” taxes

  • Impose “exit tax” on companies relocating outside U.S.
  • Impose tax on high-speed trading
  • Eliminate incentives for fossil fuel production
  • Boost incentives for R&D
  • Eliminate deferral of tax on foreign business income
  • Impose 10% repatriation tax on accumulated profits of foreign subsidiaries
  • Repeal most business tax incentives (except R&D)
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