Though tax policies haven’t received top billing in this year’s presidential election dialogue, they’re still part of the conversation. Here’s a quick review of each candidate’s tax proposals based on information released by their campaigns. Keep in mind that regardless of who wins in November, any changes to tax policy would require congressional action.
On August 8, 2016, Donald Trump announced a revised tax plan. Full details of the new plan were not immediately available on the campaign’s website. The following summary is based on the original plan announced by the Trump campaign and what we currently know about the revised plan.
Plans released by the Trump campaign initially proposed reducing the current seven tax brackets to four, with the top rate dropping from 39.6% to 25%, and no tax due for individuals with incomes under $25,000 ($50,000 for married couples filing jointly).1 Trump has recently announced changes to his tax proposal, including a consolidation to three tax brackets: 12%, 25%, and 33%.2 This change moves the Trump campaign’s plan closer to the tax reform plan announced by House Republicans in June of this year.3 The Clinton campaign’s tax plans do not reflect changes to existing tax brackets, but do support a new 4% “fair share surcharge” on taxpayers with an adjusted gross income (AGI) exceeding $5 million.4