While a lot of controversy has been swirled up by the media in recent days concerning Donald Trump’s tax records, not much has actually been said.
Not much is also said about the presidential candidates plans for the tax system. The New York Times revealed Donald Trump’s business acumen. And gave information on our general tax system when it revealed that, due to a net-income loss of $916 million dollars in 1995, Trump could defer federal income tax for up to eighteen years. While the media establishment wishes to spin the story, Trump has made it clear that: “He know[s] our complex tax laws better than anyone who has ever run for president and am the only who can fix them,” tweeted on Sunday.
So what is Trump’s tax proposal?
While the Republican candidate has not delivered a full release on his tax plan, throughout the campaign he has remained consistent on his vision for taxation. His views are summed up from repeated statements from speeches, press releases and other public addresses. Through the campaign, Trump proposes a 4 bracket system in simple order of 1-5-10-15%; all the while killing the death tax and corporate tax.
Trump also proposes that any business of any size will pay no more than a 15% tax . The Republican candidate also believes in doing away with carried interest and the estate tax; which account for double taxation.
We know Hillary’s main proposition is to not increase taxes on the middle class and only increase taxes on the rich, the same rich who fund her presidential campaign.
Hillary has made a deliberate effort to make Americans aware that they will not receive tax increases unless they make more than $200k a year. But in order to finance her schemes, she must tax someone or something, somewhere. While it is highly suspect that she will actually tax the super rich 1% once she gets into office. The same super rich to whom she is personally indebted to, the extra revenue must come from somewhere.
For Clinton, this will most likely be small to medium sized businesses who have moderate revenues of $200k. This means the brunt of small businesses who employ the majority of Americans. Business owners will likely have to pass on the burden to their employees, by hiring less people, or to their consumers by raising prices.
When someone who is funded by huge banking corporations tells you that she will tax-the-top income earners — we should all become weary of the discrepancy.
According to her campaign, Clinton does have a plan for high-income households. For the top 1%, her plan is to allow 16.7% tax-free income, then 27.9% in all federal taxes. While Clinton’s proposal has the potential to raise 1 trillion over 10 years for her lofty ideals, like paid family leave and debt-free college, her plan does not spur the crucial need for businesses to invest in order to create higher earnings and GDP. Even a small increase or shift towards higher taxes for small to medium sized businesses could be disastrous for American competitiveness. And can put some businesses’ ability to stay afloat in jeopardy.
While Hillary has made it very clear that middle class earners will not have their taxes increased, she has made no mention of middle class businesses who already pay higher than normal taxes. These businesses can’t always benefit from high powered attorneys and tax loopholes. It is also small to medium sized businesses who pay the brunt of taxes in America, and under Hillary Clinton they cannot afford to pay any more.
All small business owners understand that the only option to spur entrepreneurial growth is to vote for Donald Trump.