David Lerner Associates: Tax Plans and Political Candidates
The political race is heating up as the candidates vie for their party’s nomination, and as we head into another tax season, it might be interesting to analyze the various tax proposals that each candidate has on their books.
A study by The Tax Policy Center has revealed some key points after looking closely at tax proposals for Trump, Rubio, Cruz, and Clinton.
The Republican plan gives middle-income taxpayers a small benefit and a larger break to the upper income individuals. Clinton basically leaves middle-income taxpayers alone and makes the rich pay a little more.
On the cost side, all of the Republicans would increase the deficit. Clinton’s plan would actually make the deficit smaller.
The Republican tax plans are designed to supercharge the economy and pay for themselves. GOP front-runner, Donald Trump states on his website that his plan is designed to grow the economy and that it doesn’t add to America’s debt and deficit.
The graph below shows a slightly different picture with regards to the deficit though. (Please note that Marco Rubio has withdrawn from the Republican race).
On the other hand, Clinton says she'll use the money from her tax plan to fund additional programs. This makes her plan deficit relatively neutral.
One candidate who isn’t mentioned in this particular analysis above is Sen. Bernie Sanders. He has stated that money from his plan will be used for expansive programs, including affordable healthcare and education. And while his message doesn’t wander that far Clinton’s, both claiming that the rich should pay “their fair share,” the Sanders proposal was also analyzed by the nonpartisan TPC, and they claim his plan will raise a staggering $15.3 trillion (as opposed to $1.1 trillion for Clinton’s plan).
No matter which candidate you pick or where you stand on the political spectrum, there will undoubtedly be an ongoing debate with regard to their proposals, and smart money is on the fact that there will certainly be changes in the tax codes once we have a new president.
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