Tax Reform

Donald Trump

Trump's Tax Reform (section page) agenda seeks to fulfill four goals: DTW-TR

1. Tax relief for middle-class Americans
2. Simplify the tax code
3. Grow the American economy
4. Don't add to Debt or Deficit

Personal

• An individual filing single that has earned less than $25,000 will not pay any income tax. DTW-TR
• An individual filing head of household that has earned less than $37,500 will not pay any income tax. DTW-TR
• Couple married filing jointly that have earned less than $50,000 will not pay any income tax. DTW-TR
• Eliminate the marriage penalty DTW-TR
• Eliminate Alternative Minimum Tax DTW-TR

Trump Tax Brackets and Rates DTW-TR

Income Tax Rate	Long Term Cap Gains/ Dividends Rate	Single Filers	Married Filers	Heads of Household
0%	0%	$0 - $25,000	$0 - $50,000	$0 - $37,500
10%	0%	$25,001 - $50,000	$50,001 - $100,000	$37,501 - $75,000
20%	15%	$50,001 - $150,000	$100,001 - $300,000	$75,001 - $225,000
25%	20%	$150,001+	$300,001+	$225,001+

Corporate

• Corporate tax rate reduced to 15%, regardless of business size. DTW-TR Current rate hovers ~39.1%[1]
• Companies are required to bring their funds back from overseas accounts and pay a 10% tax on those funds. Funds used for overseas operating activities are exempt. DTW-TR

Funding for Tax Cuts

Trump pledges to propose alternative ways to keep revenue stable whilst reducing taxes. DTW-TR

• Eliminate loopholes and deductions for the very rich. Steepening the curve of the Personal Exemption Phaseout and the Pease Limitation on itemized deductions.DTW-TR
• 10% repatriation tax for corporate funds located overseas. DTW-TR
• End the deferral of taxes on corporate income earned abroad. DTW-TR
• Phase in a "reasonable cap" on the deductibility of business interest expenses. DTW-TR

Bernie Sanders

Prevent large corporations from shifting profits overseas to avoid paying US taxes. Increase taxes on capital gains and dividends. Close loopholes on corporate taxes. (BSWII)

• 6.2 percent income-based health care premium paid by employers
• 2.2 percent income-based premium paid by households.
• Progressive income tax rates.

Under this plan the marginal income tax rate would be:

37 percent on income between $250,000 and $500,000. 43 percent on income between $500,000 and $2 million. 48 percent on income between $2 million and $10 million. (0.08% of population) 52 percent on income above $10 million. (.01% of the population)

• Taxing capital gains and dividends the same as income from work
• Limit tax deductions for rich
• The Responsible Estate Tax

Creation of progressive estate tax on the top 0.3 percent of Americans who inherit more than $3.5 million.

(BSWHC)