Tax Reform
Donald Trump
Trump's Tax Reform (section page) agenda seeks to fulfill four goals: DTW-TR
- Tax relief for middle-class Americans
- Simplify the tax code
- Grow the American economy
- 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
| 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)
