Comparing the Tax Plans of the Presidential Candidates

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Wondering how the presidential candidates would change what you pay in taxes? Here are the tax proposals of the four candidates for president, including proposed changes to individual tax rates, new business tax laws, tax credits, and other aspects of the U.S. tax code. 

Hillary Clinton, Democratic Candidate for President

Individual Tax

Child care: Clinton proposes to cap child care expenses at 10% of income through tax credits and subsidized child care.

Child tax credit: Clinton proposes to expand the child tax credit.

Tax-preferred savings accounts: Clinton proposes to limit the ability of the wealthiest Americans to shelter large incomes through tax-preferred accounts such as individual retirement accounts.

Taxes on high earners: Clinton proposes a new 4% surtax for Americans earning over $5 million per year. She's also proposed an increase in the short-term capital gains tax rate on Americans making more than $400,000 a year.

Estate Tax: Clinton proposes to modify the estate tax back to its 2009 parameters.

Business Tax

Business tax returns: Clinton proposes to "simplify tax filing for small businesses."

New markets tax credit: Clinton proposes expanding this tax credit.

Profit sharing: Clinton proposes a new tax credit to encourage businesses to share profits with their workers.

Carried interest: Clinton proposes to repeal the special provision that treats carried interest as capital gains income.

Offshoring jobs: Clinton proposes to eliminate the ability of businesses to take a deduction for moving jobs outside the United States, and to require businesses to pay back any tax breaks received if they do move jobs outside the country.

International business: Clinton proposes a new exit tax for businesses that relocate their headquarters outside the United States.

Bermuda reinsurance: Clinton proposes to repeal what she deems the "Bermuda reinsurance loophole," which is used by hedge fund managers to avoid taxation.

Donald Trump, Republican Candidate for President

Individual Tax

Tax rates: Trump proposes to reduce the tax brackets from seven to three. Under Trump's plan, individual incomes would be taxed at 12%, 25%, and 33%.

Tax RateSingleMarried filing jointly
12%Less than $37,500Less than $75,000
25%Between $37,500 and $112,500Between $75,000 and $225,000
33%More than $112,500More than $225,000

 

Surtaxes: Trump proposes to eliminate the 3.8% surtax on net investment income.

Standard deduction: Trump proposes a standard deduction of $15,000 for single people and $30,000 for married couples.

Personal exemptions: Trump proposes to eliminate personal exemptions.

Filing status: Trump proposes to eliminate the head of household filing status.

Itemized deductions: Trump proposes to limit total itemized deductions to $100,000 for single people and $200,000 for married couples.

Child care: Trump proposes an above-the-line deduction for child care expenses. The deduction would be available for single people with income under $250,000 and married couples with income under $500,000.

For dependents under the age of 13, the amount of the deduction would be limited based on the state average cost of child care based on the age of the child and limited to four dependents per year. For elderly dependents, the deduction would be limited to $5,000 per year.

Estate tax: Trump proposes to repeal the estate tax. However, any unrealized capital gains on assets held until death would be subject to the income tax, with the first $10 million excluded from tax.

Business Tax

Corporate tax rate: Trump proposes a maximum 15% rate.

Repatriating foreign earnings: Trump proposes a 10% rate for businesses that bring their foreign earnings back to the United States.

Third-Party Candidates

Gary Johnson, Libertarian Candidate for President: Johnson proposes to repeal the income tax and payroll taxes.

In place of the current income tax and payroll tax system, Johnson proposes a 28% nationwide sales tax on goods and services.

Jill Stein, Green Party Candidate for President: Stein proposes tax cuts for working families, the poor, and the middle-class, as well as higher taxes for the richest Americans. She also proposes to remove the cap on Social Security taxes above a certain level of income. She's also proposed to require full disclosure of corporate subsidies in the budget, and to stop hiding subsidies in the complicated tax code.  

Where to Learn More about Each Candidate's Tax Plans

Clinton:

Trump:

Johnson:

Stein: