Is there anyone in America who thinks they’re paying just the right amount of taxes?
[ad#Google Adsense 336×280-IA]The vast majority believe we pay too much.
Especially when we see what we get for our money.
Do-nothing leaders, crumbling infrastructure, awful schools… the list goes on.
There are many issues to consider when choosing a president, but taxes are an important one.
So for the upcoming election, you should know what the candidates think.
Here’s a quick and dirty rundown of where the various presidential candidates stand on taxes:
Tax on Ordinary Income
Secretary Hillary Clinton – No specific proposal
Sen. Bernie Sanders – Apply Social Security payroll taxes to earnings over $250,000
Gov. Jeb Bush – Set top tax rate of 28% and bottom tax rate of 10%
Dr. Ben Carson – Phase in over time a flat 10% to 15% tax rate
Gov. Chris Christie – Lower tax brackets to 8% to 28%; eliminate itemized deductions except for mortgage interest and charitable donations; eliminate payroll taxes for workers under 25 and over 62
Sen. Ted Cruz – Unspecified flat tax
Gov. John Kasich – Top tax rate of 28%
Sen. Rand Paul – Flat tax of 14.5% with standard deduction of $15,000 per filer; eliminate payroll taxes and deductions except for mortgage interest and charitable donations.
Sen. Marco Rubio – Two brackets of 15% and 35%; the higher bracket is $75,000 for singles and $150,000 for couples; eliminate itemized deductions except for mortgage interest and charitable donations
Donald Trump – Top tax rate of 25% and bottom tax rate of 10%; no tax on individuals earning less than $25,000 or on families earning less than $50,000
Tax on Capital Gains/Dividends
Clinton – Capital gains on short-term investments would be taxed at rates of 24% to 43.4%; capital gains on long-term investments would be 24%
Sanders – Capital gains tax on wealthiest 2% would be doubled
Bush – Top rate of 20%
Carson – No specific proposal
Christie – No specific proposal
Cruz – No specific proposal
Kasich – Capital gains tax rate of 15%
Paul – A 14.5% flat tax on capital gains and dividends
Rubio – Taxes on capital gains and dividends would be eliminated
Trump – For single filers (numbers in parentheses are for married filers), the rates are 0% for up to $50,000 ($100,000) in income, 15% for up to $150,000 ($300,000) in income and 20% for income above $150,000 ($300,000)
Other
Clinton – Establish high-frequency trading tax for hedge funds that engage in this type of computerized trading
Sanders – Increase tax rates on estates over $10 million, while lowering the exclusion to $3.5 million from $5.43 million
Bush – Corporate tax rate of 20%
Christie – Lower top corporate tax rate to 25%
Cruz – Eliminate estate tax
Kasich – Eliminate estate tax
Paul – Set flat corporate tax rate of 14.5% on income and labor payments
Rubio – Lower corporate tax rate to 25% and eliminate estate tax
Trump – Set corporate tax rate of 15% and eliminate estate tax
Now keep in mind, just because a candidate proposes a certain tax rate or change in the code doesn’t mean it’s going to happen. Candidates have been known to say one thing to get elected and then do another. Remember, “Read my lips: no new taxes”?
There is also the tricky issue of getting a proposal through Congress. That’s certainly not a slam dunk if either the House or Senate majority is the opposite party of the president.
And just because a candidate’s proposal is appealing in a sound bite doesn’t mean it works in the real world. Lower taxes could balloon the deficit. Higher taxes could stifle investment and innovation. There’s a lot of nuance here.
Nevertheless, it’s helpful to know what the candidates have stated publicly in regard to taxes.
Hoping your longs go up and your shorts go down,
Marc
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Source: Wealthy Retirement