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)
Rand Paul
Paul's Tax Reform (section page)
In consultation with some of the top tax experts in the country, including the Heritage Foundation’s Stephen Moore, former presidential candidate Steve Forbes and Reagan economist Arthur Laffer, Rand Paul devised his Fair and Flat Tax proposal. The Tax Foundation, estimates that in 10 years it will increase gross domestic product by about 10%, and create at least 1.4 million new jobs. Rand Paul's tax reform consists of "The Fair and Flat Tax" proposal. (RPW-TR)
The Fair and Flat Tax" proposal
- A $2 trillion tax cut that would repeal the entire IRS tax code
- Replaces the tax code with a low, broad-based tax of 14.5% on individuals and businesses applied equally to all personal income, including wages, salaries, dividends, capital gains, rents and interest
- Eliminates every special-interest loophole
- Eliminates the payroll tax on workers and several federal taxes outright, including gift and estate taxes, telephone taxes, and all duties and tariffs
- Eliminates all deductions except for a mortgage and charities
- Does not tax first $50,000 of income for a family of four
- Retains the earned-income tax creditFor low-income working families
- Levies the 14.5% tax on revenues minus allowable expenses, such as the purchase of parts, computers and office equipment
- Immediately expenses all capital purchases, ending complicated depreciation schedules
"President Obama talks about “middle-class economics,” but his redistribution policies have led to rising income inequality and negative income gains for families. Here’s what I propose for the middle class: The Fair and Flat Tax eliminates payroll taxes, which are seized by the IRS from a worker’s paychecks before a family ever sees the money. This will boost the incentive for employers to hire more workers, and raise after-tax income by at least 15% over 10 years." (RPW-TR)
"Polls show that “fairness” is a top goal for Americans in our tax system. I envision a traditionally All-American solution: Everyone plays by the same rules. This means no one of privilege, wealth or with an arsenal of lobbyists can game the system to pay a lower rate than working Americans." (RPW-TR)
Distrust of IRS
"Another increasingly obvious danger of our current tax code is the empowerment of a rogue agency, the IRS, to examine the most private financial and lifestyle information of every American citizen. We now know that the IRS, through political hacks like former IRS official Lois Lerner, routinely abused its auditing power to build an enemies list and harass anyone who might be adversarial to President Obama’s policies. A convoluted tax code enables these corrupt tactics." (RPW-TR)
Audit the Fed
"The Federal Reserve was created by Congress and is supposed to be overseen by Congress. The Fed is now in every nook and cranny of banking with unprecedented regulatory powers and no Congressional oversight. I believe the Fed should be audited and the regulatory power should be placed back under the control of Congress.
A complete and thorough audit of the Fed will finally allow the American people to know exactly how their money is being spent by Washington. For too long, the Fed has been operating under a cloak of secrecy. The American people have a right to know what the Federal Reserve is doing with our nation's money supply.
I will continue my fight to audit the Fed and restore transparency and fiscal sanity to our nation’s checkbook." (RPW-TR)
