Tax Reform
Contents
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
Ted Cruz
Cruz's Tax Reform (section page)
Repeal Tax Code and Institute a "Flat Tax" Policy
- Wants to institute a "simple flat tax policy"
- Up to 36,000 dollars in untaxed income for a family of four (TCWTR)
- A flat 10% tax rate for all individuals exceeding the income cutoff (TCWTR)
- An additional flat 16% "business tax" that effectively acts as a value-added tax (TCWTR)
- Child Tax Credit and deductions for mortgage interest payments will remain in effect (TCWTR)
- "I am campaigning on a flat tax that would allow every American to fill out his or her taxes on a post card [or iPhone app] that allow us to abolish the IRS."(WE)
- Supports elimination of other taxes such as the Inheritance Tax, Overseas Profit Tax, Alternative Minimum Tax, and any "Obamacare" taxes (TCWTR)
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)
