Both Plans Would Significantly Affect Wealthy, Analyses Suggest
As Election Day draws near, small business owners are keeping a close eye on the policy proposals of both Hillary Clinton and Donald Trump, particularly when it comes to issues of taxation. Two new reports from the Tax Policy Center, an arm of the Brookings Institute and the Urban Policy Center, examine the tax proposals of each candidate. Politico reports that “voters face a stark choice” in the presidential election “when it comes to taxes.” Politico says Hillary Clinton seeks a $1.4 trillion tax increase, while Donald Trump wants to cut taxes by $6.2 billion. The Tax Policy Center indicated that “the wealthy would be the big winners” with Trump’s plan, with the top one percent receiving an average tax cut of $215,000. Meanwhile, Politico says, the report shows that “the rich would bear nearly all” of Clinton’s increases. The Washington Times reports the reports also show that “the poor…make out about the same no matter who” wins. According to the study, Clinton’s plan would lead to a $100 cut, while Trump would provide a $110 decrease. The Washington Post reports that commenting on the new analyses of the two candidates’ tax proposals, Tax Policy Center director Leonard Burman said, “They really couldn’t be more different,” adding, “In almost every meaningful respect, these plans are mirror images.”
What This Means For Small Businesses
In its writeup about the new Tax Policy Center reports, the New York Times noted that officials from Donald Trumps campaign have told NFIB that pass-through businesses, a category covering many small businesses, “could pay a flat 15 percent business rate instead of the generally much higher individual rates they currently pay.” Trump also wants to simplify the tax code. Meanwhile, the Times says the analyses found that Hillary Clinton would make the tax code “more complex for taxpayers other than small businesses.” Small business owners must decide which candidate’s tax proposal they favor, but the Tax Policy Center has released information that has caused the important issue of taxation to be debated ahead of November’s election.
Additional Reading
McClatchy also covers the new Tax Policy Center analyses.
Note: this article is intended to keep small business owners up on the latest news. It does not necessarily represent the policy stances of NFIB.
