The 2016 election is in full swing… and one thing we all want to know is, how are the candidates proposing to change the tax rates? While Donald Trump proposes to collapse the tax brackets from 7 to 3, Hillary Clinton is proposing to add a 4% surtax on incomes greater than $5,000,000.
TRUMP Three tax brackets: 12%, 25%, and 33%.
CLINTON Five tax brackets: 10%, 15%, 25%, 28%, 33%, 35%, and 39.6% plus a 4% surtax on Adjusted Gross Incomes over $5,000,000.
Both will still give favorable tax treatment to long term capital gains and qualified dividends. Taxpayers in all tax brackets and all levels of income will see a tax cut under Donald Trump’s proposal while the wealthiest Americans will pay more under Hillary Clinton’s proposal. This is pretty much what you would expect from each candidate. Of course, they need to get elected first and then get Congress to go along… which is always a long shot.
Want to know how each proposal would affect your taxes? Contact my office for a free consultation. 734-377-3641