Taxpayers pay close attention when politicians put forth tax proposals during an election year, and this year’s presidential campaign is no exception.
The two-party presidential nominees have significantly different views on many topics, including tax reform. Chris Hennessey talks about tax proposals offered by the candidates and their potential impact on taxpayers.
- Donald Trump’s tax proposal would reduce the number of tax brackets. He also proposes a process to repatriate corporate profits held outside of the United States, at a much lower rate over a multiyear period.
- Hillary Clinton’s plan would retain the current tax brackets and increase the tax rate for individuals with income higher than $1 million. She also proposes limiting deductions for high earners, reducing the estate tax exemption to its 2009 level, and including a separate gift tax exemption of $1 million.
While candidate proposals may have some impact on the markets in the near term, any post-election tax reform or program changes will largely be driven by Congress.