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”
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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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